Bitcoin traded within a record-setting $10,877 range Monday after plummeting from its all-time highs above $58,000 set over the weekend. This marks the leading cryptocurrency’s first five-figure daily price range.
- Bitcoin dropped from its Monday high of $57,577 on Coinbase to a low of $46,700 before rebounding to pare most of its losses toward the end of the day, trading above $53,500 at last check.
- So far in 2021, bitcoin (BTC, -11.79%)’s average daily price range is $3,765, per market data analyzed by CoinDesk, well below Monday’s record range.
- Monday’s sharp correction and large range was not a surprise to some analysts. “The market hasn’t seen a pullback like this since early January. With this level of leverage in the system, many had considered it to be overdue,” said Coin Metrics data scientist Jon Geenty in a private message with CoinDesk.
- “This move can largely be attributed to record open interest in the futures markets and the liquidation that tend to follow,” Geenty told CoinDesk.
- Before Monday’s correction, FTX CEO Sam Bankman-Fried described the cryptocurrency market as “massively over-leveraged” in an interview with The Block.
- Year to date, bitcoin has gained 83%, continuing its more than 300% rally in 2020.