The cryptocurrency market experienced one of its most volatile trading days in recent memory on March 5, 2024, as Bitcoin surged to a new all-time high of $69,210 before violently reversing course and crashing to the $62,000 range — a move that sent shockwaves through the NFT ecosystem and wiped out over $1.1 billion in leveraged positions across centralized exchanges.
TL;DR
- Bitcoin hit a new all-time high of $69,210 at 10:03 AM ET, surpassing its November 2021 peak after 846 days
- A violent reversal saw BTC plunge roughly 13% to the $62,000 range within hours
- Over $1.17 billion in long positions were liquidated across the crypto market in 24 hours
- BlackRock’s IBIT ETF recorded $3.8 billion in trading volume, a record for any Bitcoin ETF
- NFT markets faced immediate pressure as traders deleveraged amid the broader crypto rout
Bitcoin’s Historic ATH and Immediate Reversal
The morning of March 5 began with euphoria. At exactly 10:03 AM Eastern Time, Bitcoin’s price on major exchanges including Coinbase and Binance surpassed $69,000 for the first time since November 10, 2021 — a wait of 846 days for holders who endured the brutal crypto winter that followed. The price peaked at $69,210, marking a definitive break above the previous cycle high.
However, the celebration was fleeting. Within minutes, massive sell orders flooded the market, and Bitcoin began a precipitous decline. By the afternoon, BTC had plunged to the mid-$62,000 range — a swing of approximately $7,000, representing a roughly 13% decline from the intraday peak. The speed and severity of the reversal caught many traders off guard, particularly those who had opened highly leveraged long positions anticipating a continued breakout.
A Billion-Dollar Liquidation Event
The fallout from Bitcoin’s whipsaw price action was severe. According to data from CoinGlass, the overall cryptocurrency market witnessed over $1.17 billion in liquidated long positions within a 24-hour period. Major centralized exchanges saw $1.13 billion in combined liquidations, making it one of the largest single-day liquidation events of the cycle.
Within the Bitcoin market specifically, more than $324 million in positions were forcibly closed, with short positions accounting for $92.53 million of that total. The cascade of liquidations amplified the selling pressure, creating a feedback loop that drove prices even lower in the short term.
ETF Frenzy: BlackRock IBIT Shatters Records
Even as spot prices tumbled, the institutional infrastructure supporting Bitcoin continued to hit milestones. BlackRock’s iShares Bitcoin Trust (IBIT) recorded a staggering $3.8 billion in trading volume on March 5, making it the fourth most traded ETF across all categories that day — not just among crypto products. The fund saw $420 million in net inflows on the prior trading day, demonstrating sustained institutional demand despite the approaching volatility.
Combined, all spot Bitcoin ETFs shattered the $10 billion daily trading volume record, underscoring how deeply embedded these products had become in traditional finance just two months after their January launch.
NFT Market Impact and Deleveraging
The NFT market, which had been enjoying a resurgence alongside Bitcoin’s rally, faced immediate pressure as the flash crash triggered widespread deleveraging. Traders who had used leveraged positions to fund NFT purchases were forced to sell assets to meet margin calls, creating downward pressure on floor prices across major collections.
Interestingly, while Bitcoin bore the brunt of the selloff, several major altcoins demonstrated relative strength. Solana posted a 2.5% daily gain and Ethereum rose 3.5%, suggesting that capital was rotating within the crypto ecosystem rather than exiting entirely — a dynamic that often bodes well for NFT projects built on these alternative blockchains.
Why This Matters
This event represents a critical stress test for the maturing crypto market. The fact that Bitcoin reached a new all-time high before its scheduled halving in April — something that has never happened in previous cycles — suggests the spot ETF-driven demand has fundamentally altered market dynamics. For NFT participants, the lesson is clear: in a market where Bitcoin can swing $7,000 in a single afternoon, liquidity management and risk controls are not optional. The rapid recovery in altcoin prices also hints that the broader digital asset ecosystem, including NFTs, may be developing resilience to Bitcoin-driven volatility shocks.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
846 days waiting for a new ATH and it lasted what, a few hours? the $1.1B liquidation cascade was brutal to watch in real time.
BlackRock IBIT doing $3.8B in volume on the same day BTC crashed 13% tells you everything about where the money flows now. ETFs changed the game.
IBIT volume that day was basically institutions buying the dip while retail got liquidated. two different markets trading the same asset
NFT floor prices got absolutely wrecked during this. BAYYC dropped like 15% in hours and nobody wanted to catch the falling knife.
BAYC losing 15% in hours from margin calls and forced selling really highlights how interconnected NFT and crypto markets have become. the NFT market never fully recovered from that deleveraging event
got liquidated on the $65K long. painful but predictable. same pattern every ATH, stop hunts then dump
the NFT collateral damage was wild. projects that had nothing to do with BTC price action lost 20-30% just from forced selling and margin calls
$1.17B in long liquidations and people still leverage 10x on a new ATH. the market teaches the same lesson every cycle and nobody learns
the 13% drop from $69,210 to $62,000 in hours is textbook stop-hunt behavior. exactly what happened at the november 2021 ATH too. whales trigger liquidation cascades and buy the dip
BlackRock IBIT doing $3.8B volume that day was the real story. institutions bought the dip while retail got liquidated
846 days between ATHs and the move lasted hours. the lesson from march 5th was that reaching a new high is meaningless without holding it. $1.17B in longs gone in a single session