• Bitcoin’s price plummeted toward $59K today
• Over $250 million was liquidated in leveraged positions, mostly longs
• The drop was likely caused by higher-than-expected US inflation numbers, reducing chances of a Fed rate cut in November
Bitcoin’s price plummeted toward $59K today, wiping off hundreds of millions from the derivatives market.
Bitcoin Price Drops Below $59K
The cryptocurrency market has seen better days. Bitcoin‘s price hovered at the $62,000 range for a few days, but it appears that the bears were finally able to take full control. Just a few moments ago, BTC dropped below $59,000, reaching a local low of $58,867.
The move has resulted in the liquidation of more than $250 million in leveraged positions, the majority of which of course is long.
Reaction to CPI Numbers
Bitcoin’s price reacted negatively to the announcement of higher-than-expected CPI numbers. The Consumer Price Index is a gauge for inflation in the United States. An increase essentially means that the Federal Reserve might not cut rates again in November, which is bad news for risk-on assets such as Bitcoin.
Conclusion
The cryptocurrency market has seen significant volatility in response to macroeconomic factors like inflation data. Bitcoin dropped below $59K, resulting in over $250 million in liquidations. The price action shows the market’s sensitivity to interest rate expectations.
