Market Shaken as Bitcoin Price Correction Unsettles Following February Peaks
Bitcoin experienced a thrilling month in February, soaring to a 22-month high of $64,000 before swiftly correcting to $58,700. This not only affected Bitcoin but also caused disruptions in the altcoin market, particularly impacting Ethereum.
The market turbulence resulted in unexpected glitches, with popular exchange Coinbase displaying zero balances for certain users. In the past hour alone, over $250 million in futures were liquidated, with a cumulative effect of nearly $600 million in the last 12 hours. This had far-reaching implications for both long and short positions.
Despite the correction, Bitcoin’s value still saw an impressive 42% increase in February, marking the most significant monthly gain since December 2020.
The recent surge in price coincides with notable on-chain metrics, indicating heightened activity in the Bitcoin network. On-chain transaction volume reached a staggering $35.37 billion, with over 283,000 unique tokens moved and 3,661 whale transactions involving $1 million or more.
Adding an intriguing element to Bitcoin’s rise are recent events involving the US government. A wallet suspected of holding seized Bitfinex hacker funds initiated a transfer of around $173 million worth of Bitcoin. Simultaneously, another wallet with approximately $750 million worth of Bitcoin experienced significant activity, raising questions about the government’s indirect involvement in the crypto market.
These developments have sent shockwaves through the crypto space, fueling rumors about potential impacts on Bitcoin’s price and speculations about the motives behind the US government’s Bitcoin transactions. Some express concerns about possible selling pressure, while whistleblower Edward Snowden suggests the US may be secretly buying Bitcoin to alleviate its debt.
In conclusion, February has been a wild ride for Bitcoin, with the crypto community closely monitoring the developments and speculating on what the future holds. Will Bitcoin reach its all-time high? Only time will provide the answers to these mysteries.