The price of Bitcoin (BTC) collapsed below $67,000 during Asian trading on Friday, down more than 7%.
This collapse led to the liquidation of $661 million worth of short positions over the past 24 hours. A breakdown showed that about 80% of the liquidation was in long positions ($525.2 million). Liquidations of short positions totaled $136.5 million, according to Cointelegraph.
However, data from Farside Investors showed that total inflows into spot Bitcoin ETFs fell to 133
million as of March 14.
Pav Hundal, an analyst at Swyftx, believes that if ETF volumes continue to decline, BTC could see a correction to the $60,000 area.
Crypto trader CrediBULL Crypto wrote on his X (Twitter) page, "The drop we have been looking for is now happening."
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In addition, Greta Yuan, Head of Research at VDX, pointed out that the recent rise in Bitcoin prices was too fast for the market to properly evaluate, which is why she believes the current correction is taking place.
It's worth noting that decentralized staking platform Polymarket is only giving a 38% probability that BTC will close above $70,000 by Friday afternoon, down from a high of 90% earlier this week.
The latest better-than-expected PPI data also contributed to the price drop, as it negated expectations of a June rate cut by the Federal Reserve.
According to many experts, the market is now adjusting its expectations for Bitcoin due to the uncertainty surrounding the upcoming halving in April 2024.
At the time of writing, BTC is trading at $68,627, down 6.97% in the last 24 hours.
Related: D8X founder confident in Bitcoin growth after halving