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Sellers pushed Bitcoin below $55,000, amid record-high BTC futures open interest and excitement around the issuance of $1,400 stimulus checks for Americans, which had traders awaiting a rebound.
A few days after (BTC) reached a new all-time high above $61,000, bears forced the market back into the mid-$50,000 range on March 15.
Data from TradingView shows that Bitcoin price dropped as low as $54,600 and at the time of writing, buyers have not stepped in to arrest the decline.
A number of recent developments have raised the top cryptocurrency’s terror, insecurity, and doubt (FUD) element, including rumours of a possible digital asset ban in India, which would criminalise the ownership, issuance, mining, selling, and transition of cryptocurrency.
To add to the day’s bad news, PancakeSwap (CAKE) and Cream Finance (CREAM), two of the top DeFi ventures on the Binance Smart Chain, were victims of a DNS spoofing attack that attempted to trick users into entering their private keys on the website.
Both projects notified users of the exploit immediately and urged them to stop logging in until the problem was fixed. and are reminded to keep their private keys and seed phrases secure and off-site. CAKE was down 8.7 percent at the daily close, while CREAM was down 14.3 percent before recovering to $110 at the close.
The bullish uptrend remains intact
Despite the drop on Monday, traders remain hopeful that BTC can rebound rapidly, and a new study predicts that up to 10% of the $400 billion in pandemic relief for US civilians will be used to buy Bitcoin and stocks.
Another encouraging indicator for BTC comes from the futures markets, where a record $22.5 billion in open interest on BTC futures shows that bulls are confident that the latest uptrend will continue.
According to Chad Steinglass, Head of Trading at CrossTower, the early morning sell-off was not unexpected due to a number of reasons, including less liquidity on weekends, which may lead to “liquidations of heavily levered swap and options items that trade outside of the United States,” exacerbating the downward trend.
“Couple this with the fact that China has been trading weak ever since the Lunar New Year in both equity and crypto markets, and a sell-off from the weekend highs, while disappointing, is not particularly surprising.”
Stimulus optimism leads to new record-highs in equities
Traditional financial markets soared on Monday, as excitement about President Biden’s new $1.9 billion stimulus package helped to alleviate worries over increasing Treasury yields.
The S&P 500, Dow, and NASDAQ both finished the day up 0.65%, 0.53 percent, and 1.05 percent, respectively. As the trading day came to an end, the S&P 500 and Dow all set new all-time records.
Select altcoins ignore Bitcoin’s bearish turn
Despite the bearish turn of events, some altcoins managed to hold their ground and surge higher.
Enjin (ENJ) saw its price leap 32% to a new all-time high of $3.00 during the early trading hours as the altcoins value rose following their listing on the Huobi exchange.
The VeChain (VET) and VeThor Token (VTHO) dual-token scheme have advanced, with VET reaching a new all-time high of $0.0827 thanks to a high volume jump. The price of VTHO rose by 37% to $0.0119, its highest amount in over two years.
The total cryptocurrency market cap is currently $1.71 trillion, with Bitcoin dominating at 60.9 percent.