A sell-off dominated the cryptocurrency market on Wednesday after the price of Bitcoin (BTC) fell below $ 56,000.

The market selling liquidated $ 1.4 billion, and some analysts have speculated that this could be the latest sweep for over-leveraged traders before Bitcoin can rise to the $ 70,000 level.

Daily chart BTC / USDT. Source: TradingView
A sign that the market had rallied last week was the rapid increase in the premium for kimchi, followed by a 7% drop in bitcoin on Wednesday, as traders fear that this is a signal to stop the market.

Despite the downturn in the market, analysis of chain data indicates that bitcoin may soon see its highest all-time high, as whales, miners, and owners have cut long-term or stopped selling altogether and institutional demand remains strong.

Traditional markets are nearing record levels
Stock markets were trading near highs on Tuesday as accelerating job growth, record levels in the services sector and industrial expansion led to unexpected optimism that sent stock prices higher.

Despite this positive news, the Dow and Nasdaq indices closed down 0.06% and 0.16%, respectively, while the S&P 500 managed to close the day 0.06% higher.

Logging into Coinbase gives you some relief
Several altcoins managed to build up throughout the day after Coinbase announced that 1-inch, Enjin (ENJ), New Kind of Network (NKN), and Origin Protocol (OGN) will be listed on Coinbase Pro.

After the announcement, 1-inch and ENJ prices were up slightly 5%, while the Origin Protocol was up 10% and NKN was up 27%.

Solana (SOL) is also up 10%, while Ether (ETH) is down 7% and traded below $ 2,000.

Source: CoinTelegraph