Friday consumer price index data provoked a negative reaction from traders, with Bitcoin briefly falling below $27,000 and altcoins taking a beating.
The crypto market has seen a lot of volatility this year as a result of significant inflation pressures in the United States and the flagship cryptocurrency, Bitcoin, has recorded losses in the last three months as bears gain control of the market’s price action.
The consumer price index increased 8.6% from a year ago according to Labor Department figures released Friday. The average inflation indicator jumped by 1%, above all expectations. The most significant drivers of price rises were housing, food, and gasoline.
The core CPI, which excludes the more volatile food and energy components, rose 0.6 percent month over month and 6% year over year, beating expectations.
The crypto market has been in a decline as selling pressures grow on investors waiting for the US Federal Reserve’s upcoming rate hike announcement, which has become a monthly defining feature of market direction.
The stock market closed in a wave of red, foreshadowing further pessimism, as Bitcoin’s decline from Friday continued throughout the weekend. According to TradingView, the top cryptocurrency’s price fell to $26,856 on Bitstamp today, its lowest level in a month.
Ethereum, the second-largest cryptocurrency, has suffered a far worse hit, falling 18% since Friday’s opening price, while other altcoins have also dropped dramatically. BNB, SOL, AVAX, and ADA, for example, have all dropped by 11%, 20%, 26%, and 20%, respectively, in the same time frame.
The global cryptocurrency market has lost around $136 billion since Friday’s data, falling from $1.215 trillion less than 72 hours ago to $1.079 trillion at the time of writing.
Long orders have been liquidated in large numbers as the majority of the crypto market’s values have declined in recent hours. Long orders account for 67.62 percent of total liquidations, according to coinglass data.
139,651 traders across the cryptosphere liquidated their long orders, bringing the total amount liquidated to more than $353 million, in the past 24 hours.
Bitcoin has been extremely volatile in recent weeks, losing ten weeks in a row so far, and this pattern appears to be set to continue in June.