The cryptocurrency market took a significant downturn today (6/3/2024) following Bitcoin's historic surge to its all-time high. According to CoinMarketCap data as of Wednesday (6/3/2024) at 10:24 AM WIB, the crypto market experienced a decline. Bitcoin weakened by 7.09% to $63,266.22 after previously reaching the $69,000 level, setting a new all-time high (ATH). Despite this, it remained in positive territory for the week, up by 11.09%.
Ethereum also dipped by 2.98% in the last 24 hours, although it still saw an increase of 8.89% over the week.
Cardano experienced an 11.48% decline on a daily basis, although it appreciated by 9.87% over the week.
Similarly, Dogecoin plummeted by 23.28% in the last 24 hours, but it soared by 58.74% over the past seven days.
The CoinDesk Market Index (CMI), which measures the weighted performance of the digital asset market, fell by 6.96% to 2,616.08. Open interest depreciated by 6.44% to $62.32 billion.
Meanwhile, the fear & greed index from coinmarketcap.com showed a reading of 86, indicating that the market is in a highly optimistic phase regarding the current state of the economy and the crypto industry.
According to coindesk.com, the rapid rise in Bitcoin's price over the past month, reaching its peak at a new all-time high and swiftly reversing on Tuesday, suggests that some early miners have begun selling their old block rewards, putting pressure on Bitcoin's price.
On-chain data found by CryptoQuant indicates that, just before Bitcoin hit its new all-time high of around $69,000 and then dropped to $62,000 on Tuesday, 1,000 bitcoins worth about $69 million were moved to Coinbase through addresses that are over a decade old, according to research firm associated with miners. (Moving long-dormant tokens to Coinbase, a major crypto exchange, could be the beginning of a sell-off.)
CryptoQuant analyst Bradley Park said that the sale of 1,000 bitcoins is likely to trigger a significant price decline.
"Especially when traders are waiting to short the highest bitcoin price of all time, as on Tuesday," Park said.
Conclusion:
The crypto market's downturn following Bitcoin's record-breaking surge highlights the volatility and speculative nature of the cryptocurrency industry. While Bitcoin's meteoric rise has captivated investors, it also attracts profit-taking and selling pressure, as seen with the movement of long-dormant bitcoins to exchanges. As the market navigates through these fluctuations, investors should exercise caution and stay informed about the underlying factors influencing cryptocurrency prices.