On March 15th, Bitcoin price sold off as bears pushed it back into the mid-$50,000 range a couple of days after the leading cryptocurrency had reached a new all-time high of $61,000. According to the latest data, the price of Bitcoin had dropped to as low as $54,600 and buyers didn’t step in for arresting the decline. There has been a series of developments recently, which has increased fear, uncertainty and doubt (FUD) relating to the top cryptocurrency. This includes a potential ban on the asset in India, which would criminalize the issuance, possession, transfer, trading and mining of cryptocurrency.
There was additional bad news for the day, as two of the leading DeFi projects, Cream Finance (CREAM) and PancakeSwap (CAKE), which exist on the Binance Smart Chain became victim to a DNS spoofing attack that was aimed at phishing users to enter their private keys. Users were immediately informed of the exploits by both the projects and they were advised to avoid entering their log in details until the problem was resolved. They were also reminded to keep their seed phrases and private keys secure and stored offline. At the end of the day, CREAM’s price had reduced by 14.3% and CAKE’s price had fallen by 8.7%.
Despite the decline on Monday, traders remain optimistic that Bitcoin will be able to recover rapidly and according to a recent survey, almost 10% of the total $400 billion to be paid to US citizens for pandemic relief could be used for investing in Bitcoin and stocks. The futures market also showed another bullish indication for Bitcoin, as the open interest on BTC futures was around $22.5 billion, highlighting that bulls are optimistic about the current uptrend. Experts said that the sell-off early morning didn’t really come off as a surprise because of a number of factors, which include less liquidity over the weekend.
As far as the traditional financial markets are concerned, they rallied on Monday due to optimism brought upon by the $1.9 billion stimulus package that had been signed into law by President Joe Biden. This helped in dampening the concerns pertaining to the Treasury yields. The NASDAQ, DOW and S&P 500 all closed for the day positive, as they each were up by 1.05%, 0.53% and 0.65%, respectively. The DOW and S&P 500 both reached new all-time highs with the trading day coming to an end.
Regardless of the bearish turn in the market, there were a number of altcoins that managed to resist and were able to rally. There was a 32% surge in Enjin (ENJ), as it reached a new all-time high of $3.00 in the early hours of trading. This was because of a surge in altcoin volume after it was listed on the Huobi exchange. There was also a spike in volume in the dual-token system of the VeThor (VTHO) and VeChain (VET) token, which lifted the latter to a new all-time high. The market capitalization of the overall crypto market is now at $1.71 trillion.