The cryptocurrency market experienced a period of volatility recently, with nearly $190 million in leveraged positions liquidated in the 24 hours leading up to the release of key Consumer Price Index (CPI) data.
Bitcoin Feels the Heat
Bitcoin, the world’s leading cryptocurrency, felt the brunt of the selling pressure, dropping 2.5% from its daily high of $69,547 to a low of $66,018. This price movement triggered a wave of margin calls, forcing traders who had used leverage to close their positions.
Ether Follows Suit
Ether (ETH), the second-largest cryptocurrency by market capitalization, also saw a significant decline, falling 2.58% to $3,500. This price movement further contributed to the overall liquidation volume.
Uncertain CPI Data Fuels Market Jitters
The market volatility is likely linked to the upcoming release of CPI data, a key economic indicator that can influence investor sentiment towards riskier assets like cryptocurrencies. Investors are likely waiting on the sidelines to see if the data suggests a potential rise in interest rates, which could dampen the crypto market.
Navigating Volatile Waters
While short-term price fluctuations are common in the cryptocurrency market, these recent liquidations highlight the risks associated with leverage trading. Investors should carefully consider their risk tolerance and only invest what they can afford to lose.
Disclaimer: The information provided is for educational purposes only and should not be considered financial advice. Please conduct your own research before making any investment decisions
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoasset