Bitcoin and the entire cryptocurrency market experienced a new round of volatility following the release of the U.S. CPI data.
In recent months, price volatility for Bitcoin and the crypto market as a whole has died down following the release of U.S. CPI data, but that trend changed earlier today.
Bitcoin experienced wild volatility in a matter of hours, leading to the liquidation of nearly $300 million in positions, after the world’s largest economy showed higher-than-expected inflation growth.
The Consumer Price Index (CPI) for March showed a 3.5% increase in March 2024 compared to the same period last year. This number was actually higher than the February figure.
Excluding volatile sectors like energy and food, the core CPI also surged 3.8% from March last year.
Both figures actually beat consensus expectations, leading to speculation about what the Federal Reserve will do to fight inflation.
This has also led to greater volatility in Bitcoin and the entire crypto market, something the industry has forgotten.
The price of Bitcoin was already in the red on the daily chart, falling to $69,000. However, after the announcement, the price fell further to $67,500 within minutes.
The bulls soon returned and pushed Bitcoin up by around $1,000. Most altcoins also saw similar price action.
This volatility has hurt over-leveraged traders, with the total value of positions being liquidated daily approaching $300 million, according to CoinGlass. More than 100,000 traders have been liquidated in the past day, with the largest order occurring on Bybit, worth more than $8 million. #CPI #比特币头寸清算
