The selling pressure was likely driven by profit-taking and miners offloading some bitcoin holdings.
Solana’s SOL, Cardano’s ADA, ether and meme coins have started to reverse some of Tuesday’s losses.
Buying demand and the restoration of perpetual financing rates supported bitcoin (BTC) prices early Wednesday, fueling a recovery of the broader market.
The world’s largest cryptocurrency tumbled more than 7% on Tuesday after briefly hitting all-time highs, sparking a market-wide sell-off and liquidations of more than $1 billion amid volatility. It fell as low as $60,800, but in Asian morning hours it neared $67,000, indicating some resilience.
Some observers said the selling pressure was likely driven by profit-taking at all-time highs and miners offloading some of their bitcoin holdings. Data shows inflows into bitcoin spot exchange-traded funds (ETFs) remained strong, with BlackRock accumulating more than $760 million on Tuesday.
Meanwhile, some market analysts said high price targets for bitcoin remain in sight as April’s expected halving event, which cuts mining rewards by half, approaches.
“As demand from bitcoin ETFs, with $500 million in average daily inflows, continues to outpace new production, we may see bitcoin’s continued surge continue,” Alex Adelman, CEO of Bitcoin, shared in an email. Lolli bitcoin rewards application.
“After the Halving, increased scarcity and strong demand from retail and institutional investors will likely push the price of bitcoin even higher. Based on historical post-Halving trends, the price of bitcoin could surpass $150,000 in the next year.”
Major tokens, such as Solana’s SOL, Cardano’s ADA, ether (ETH) and meme coins, began reversing Tuesday’s losses, rising as much as 5% in the past hour on bitcoin strength.
Dog-themed tokens Dogecoin (DOGE) and Shiba Inu (SHIB) saw sell-offs of more than 15% on Tuesday, but did not rebound alongside other major tokens.
