Bitcoin falls below $63,000 following a record high of $73,000 last week.

• Last week, the flagship cryptocurrency climbed to a record $73,679.
• Last week, Bitcoin's weakness started as traders began taking profits after its 70% increase from the beginning of the year to its peak on Wednesday.

On Tuesday, its slide dropped more than $10,000 from its all-time high last week.

Coin Metrics reported that the flagship cryptocurrency was last lower by 6.5% at $62,749.99, but it had climbed to a record $73,679 just a week earlier.

Bartosz Lipiński, CEO of Cube.Exchange, stated that as ETFs purchase bitcoin supply on the open market and reduce liquidity, these events may become more frequent, causing people to lose confidence in bitcoin pricing and explore other crypto assets.

The recent decline in Bitcoin's value, which lost more than 5% and was trading at $3,287.58 after reaching $4,000 last week for the first time since December 2021, led other cryptocurrencies to fall. Bitcoin's drop was predicted by some analysts following the network's Dencun upgrade. Bitcoin's token fell 8%, Ethereum lost 7%, and Binance Coin slipped 2%.

Bitcoin proxy and crypto exchange both experienced significant declines, with bitcoin proxy falling 15% and crypto exchange dropping 8%. Additionally, all mining stocks saw a decrease, with the largest ones, Bitcoin Mining Company and Ethereum Mining Company, declining by 7% and 8%, respectively.

Lipiński stated that the pullback should be brief and the rally should continue, although the possibility of a recession in the next year could hinder the rally, which may not be predictable.

Last week, Bitcoin's weakness started as traders began taking profits after it had increased by about 70% from the beginning of the year to its peak on March 12, according to CryptoQuant data showing a significant increase in investors selling their Bitcoin at a profit on that day.

On Monday, $122 million in long liquidations of leveraged bitcoin positions occurred across centralized exchanges, according to CoinGlass. Last week, there was about $372 million in long liquidations from Wednesday to Friday.

The launch of spot bitcoin exchange-traded funds in the U.S. earlier this year has been a significant factor in bitcoin's recent rally. Despite the ETFs not being launched yet, anticipation of their regulatory approval led to an increase in interest from investors and demand for bitcoin. This, in turn, resulted in increased leverage and heightened high-frequency volatility.

Be cautious in March as volatile price action and increased trading volumes may cause pullbacks from bitcoin's long-term uptrend, advised investors and analysts.

Bitcoin is predicted to reach new heights by chart watchers, but there is also a possibility of sharp declines.