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Bitcoin Moves Strongly, More Than $200 Million Liquidated As US Releases CPI Data

Bitcoin (BTC) dropped $800 in minutes on July 13 as the United States released the latest Consumer Price Index (CPI) data that far exceeded estimates.

Data from CoinCu shows Bitcoin falling below the $19,000 mark in the minutes since the June CPI report was released, pushing US inflation up to 9.1%. Bitcoin has now recovered back to $20,000 but it looks like an uncertain signal for the bulls.

BTC daily chart. Source: CoinCu

Many experts have estimated the CPI to increase to 8.8% over the same period last year and this is still the highest level since the early 1980s.

Consumer Price Index (CPI) chart. Source: Bureau of Labor Statistics

With such inflation, the US Federal Reserve has all the more reason to raise interest rates even further. So the state of risky assets – including cryptocurrencies – is rapidly worsening.

The new CPI data also has an impact on the US dollar. Following the release, the US dollar index (DXY) spiked to a new 20-year high, forcing the Euro to fall below its parity for the first time in 20 years as a result.

Accordingly, by the time the CPI was announced, the number of traders forced to liquidate on a daily scale exceeded 70,000 and the value of the liquidations skyrocketed to over $232 million as Bitcoin and the entire crypto market saw increased volatility because of record US inflation data.

Total Liquidations at the time of CPI announcement. Source: Coinglass

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.