Crypto Market Suffers $480M Liquidations After Inflation Data Release
- Crypto market liquidation exceeds $480M after inflation report release.
- PCE data triggers significant financial market impact.
- Bitcoin experiences prolonged declines following economic updates.
The cryptocurrency market faced over $480 million in long liquidations following unexpectedly high US PCE inflation data, impacting Bitcoin and major altcoins, prompting comments from critics like economist Peter Schiff.
The event underscores market sensitivity to inflation data, triggering volatility in Bitcoin and other cryptos, raising concerns over the economic approach amid persistent inflation pressures.
The cryptocurrency market faced over $480 million in long liquidations following the release of unexpected US PCE inflation data. This event triggered declines in Bitcoin and major altcoins, marking a significant downturn period amid increased market tension.
Key figures involved include Peter Schiff, a vocal Bitcoin critic, who highlighted these vulnerabilities in the market. He commented on Bitcoin’s trajectory, predicting a fall to $75K, hinting at concerns about the current economic climate.
The market impact was immediate, with Bitcoin’s value dropping to around $108,000, reflecting a 6.5% weekly loss. Such declines indicate high-leverage positions in the market were vulnerable to macroeconomic triggers like inflation data.
This macroeconomic shift has broader implications, intensifying bearish sentiments among Bitcoin critics such as Schiff, who emphasize gold as a safer asset. The ongoing inflation and government credit concerns fuel debate around economic strategy.
The downturn affected well-known entities such as MicroStrategy, with BTC price dipping below its average cost basis. This scenario is reminiscent of past market responses to economic data, with liquidity challenges cascading through crypto markets.
Financial markets are now assessing impacts on leverage and liquidity, with analysts drawing parallels to historic volatility patterns noted in the 2021 structure. Regulatory stances remain alert as inflation pressures persist, shaping policy discussions.
Peter Schiff, Chief Economist, Euro Pacific Asset Management, “Bitcoin just dropped below $109K, down 13% from its high less than two weeks ago. Given all the hype and corporate buying, this weakness should be cause for concern. At a minimum, a decline to about $75K is in play, just below $MSTR’s average cost. Sell now and buy back lower.” — Source
