Bitcoin Retreats After Crossing $81k

Bitcoin, the leading cryptocurrency rose to a high of $81.2k in the past 24 hours but has since retreated to $78,933. Overall crypto market capitalization which touched a high of $2.71 trillion in the past 24 hours also declined to $2.65 trillion, implying an overnight decline of 0.32 percent.

The CMC Crypto Fear and Greed Index that tracks sentiment in the crypto market has dropped to 80 (Extreme Greed) from the yearly high of 81 (Extreme Greed) recorded a day earlier. The index was at 41 (Neutral) a week ago and 36 (Fear) a month earlier.

During the past 24 hours also, liquidation of short positions exceeded the liquidation of long positions in the crypto market. Liquidation of short positions amounted to $376 million versus $204 million a day earlier. Liquidation of long positions amounted to $225 million versus $157 million a day earlier. The aggregate liquidations during the 24-hour period stood at $602 million versus $361 million a day earlier.

Overall crypto market capitalization has declined 0.32 percent overnight to $2.65 trillion. The decrease in overall crypto market capitalization was also accompanied by a 16-percent increase in trading volumes.

At current prices, Bitcoin's dominance of the crypto market is 59.7 percent. Ethereum accounts for 11.2 percent of the market while other cryptocurrencies including stablecoins account for 29.1 of the overall cryptocurrency market.