Market update: bitcoin hits new all-time high before dramatic sell-off

Bitcoin reaches new all-time high before facing a sharp decline

Bitcoin reached a new all-time high in the mid-afternoon before experiencing a sharp downturn as sellers dominated the market. The new all-time high (ATH) triggered a surge of selling, notably from recent leveraged long positions, contributing to the downward momentum.

Currently, bitcoin is trading within the range of yesterday, but a decline below yesterday's low of $62.3k could potentially lead to further market sell-offs. On a brighter note, the demand from Bitcoin ETF providers continues to support BTC, with the current bullish pennant pattern indicating the possibility of higher prices in the future.

Bitcoin daily chart

Ethereum's resilience and the pending SEC decisions

Ethereum, although also retreating from its high today, has outperformed bitcoin by approximately 6%. Bitcoin's rally since mid-January has been fuelled by spot ETF purchases, while several spot Ethereum ETFs are pending a decision from the SEC.

The SEC has recently deferred decisions on Ethereum ETFs proposed by BlackRock and Fidelity, with the market now anticipating the SEC’s ruling on the VanEck Ethereum ETF, due by 23 May. Should the VanEck ETH ETF receive approval, it is expected that the SEC will also greenlight the remaining ETF applications to avoid granting a 'first mover' advantage, mirroring the approach taken with Bitcoin ETFs.

Ethereum/bitcoin daily spread chart

Crypto-related stocks experience sell-off

The downturn was not limited to cryptocurrencies alone, with crypto-related stocks witnessing losses to various extents. Coinbase, after reaching a multi-month high yesterday, has seen a reduction of approximately 2.5% so far today.

MicroStrategy has experienced a decline of over 11% from another multi-month high. It is worth noting that, despite this drop, MicroStrategy's value has risen nearly 75% since the beginning of the year.

Meanwhile, bitcoin mining company Marathon Digital Holdings has seen a 10% decrease in today's session, leaving its year-to-date performance relatively unchanged.

Coinbase (COIN) daily chart

Microstrategy (MSTR) daily chart

Marathon digital holdings (MARA) daily chart

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