CoinDesk data showed the world's largest cryptocurrency surged to $64,000 on February 28 before quickly reversing to $59,000.
Bitcoin's rapid fluctuations quickly took a turn for the worse in the early afternoon of February 28, with prices falling 7% from a high of $64,000, becoming a "blood bath" for traders using leverage.
Bitcoin quickly surged the previous day, surpassing the 60,000 USD mark for the first time since November 2021. After reaching a high of $64,037, it suddenly dropped to $59,400 and rebounded above $61,000 before another sell-off.
The sell-off has spread throughout the digital asset market, with the CoinDesk 20 (CD20) down nearly 5% after reaching a new all-time high of 2,260 on February 28. Key cryptocurrencies in CD20, such as Solana's Ether (ETH), SOL, XRP, Cardano's ADA, Dogecoin (DOGE) and AVAX of Avalanche, also fell 4-9% in an hour.
CoinGlass data shows that the sudden decline in prices has caused the cryptocurrency market to evade by a total of 700 million USD in the past 24 hours, losing the positions of leveraged derivatives.
Bitcoin has increased by 20% in just 5 days. And with the increase on February 28, it has approached an all-time high of about 69,000 USD set in November 2021, the last time Bitcoin was traded over 60,000 USD.
According to CNN, this sudden increase was partly due to billions of dollars flowing into cryptocurrency after the US Securities and Exchange Commission lit the green light to allow the opening of Bitcoin exchange-traded funds (ETFs) for spot delivery.
Another important factor taking place is the upcoming Bitcoin Halving event. Bitcoin Halving is an event programmed in a protocol that will double the block rewards given to miners - thereby doubling the number of new coin put into circulation.
This event takes place every 4 years and, in theory, will push Bitcoin higher because it creates more scarcity for an already limited cryptocurrency.
In the past, Bitcoin Halving has created a catalyst for significant price increases. But there are no rigid rules and any event (such as the prospect of new regulations) can affect all the potential benefits of Bitcoin Halving.
However, investors have been quite optimistic that that won't happen and are rushing to act or withdraw interest. Coinbase, a cryptocurrency exchange platform, has encountered a major downturn due to a spike in transactions - CEO of Brian Armstrong said in a post on X network on February 28.
Some users may see a zero balance in their Coinbase account and may have a mistake when buying or selling, Coinbases support department posted on X at around 1pm Eastern time on February 28. Our team is investigating this issue and will provide updates soon. Your assets are safe.
An hour and a half later, Coinbase said it had begun to see improvement in customer transactions. However, customers may still encounter some problems due to increased access traffic".
In Vietnam, representatives of the State Bank have repeatedly sent out the message: Bitcoin and other similar virtual currencies are not legal currencies and payment methods in Vietnam. The issuance, supply, and use of Bitcoin and other similar cryptocurrencies as a means of payment is an act that is not in accordance with current law.
