Bitcoin Drops Under $63K, Leads to Marketwide Correction

• Bitcoin short-term holders took profits last week, according to CryptoQuant.

• Ether, Solana’s SOL, BNB Chain’s BNB and Cardano’s ADA slumped more than 9%.

Bitcoin {{BTC}} slipped under $63,000 in European morning hours Tuesday, causing a marketwide tumble that saw overall capitalization drop 8% in the past 24 hours.

The losses came after a day of large outflows from the Grayscale bitcoin ETF and lower-than-usual inflows on other ETF products on Monday. The day ended with net outflows of $154 million, as reported.

On-chain analysis firm CryptoQuant said on X bitcoin short-term holders - or users that hold tokens for less than five months - took profits in the past week, which may have contributed to the selling pressure.

$BTC short-term investors took large profits

"In relation to this adjustment, if we look at the SOPR, there was a big movement related to profit realization by short-term holders who held #BTC for less than 5 months."
by @DanCoinInvestor

Link 👇https://t.co/RqBtDm81hO

— CryptoQuant.com (@cryptoquant_com) March 18, 2024

Major tokens ether {{ETH}}, Solana’s SOL, BNB Chain’s BNB and Cardano’s ADA slumped more than 9%, CoinGecko data shows.

The meme coin sector saw losses of over 17% on average, data shows, led by dogwifhat (WIF) and floki (FLOKI) at 18%. The sector has been the strongest by gains so far this year but is infamously volatile.

The broad-based CoinDesk 20, an index of major tokens minus stablecoins, slumped nearly 10%.