Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin falls beneath $120,000 as US inflation worries and $461 million in liquidations impact the market.
Bitcoin has fallen beneath the $120,000 threshold after reaching a new all-time high close to $123,000 on July 14, driven by concerns regarding inflation in the US economy.
As per information from CryptoSlate, the leading cryptocurrency is currently trading at approximately $116,894, indicating a decline of more than 5% within just 24 hours.
Nicolai Sondergaard, a research analyst at Nansen, informed CryptoSlate that a price correction was anticipated following Bitcoin’s robust ascent from $108,000 to $122,000. He highlighted notable liquidation activity around the $116,300 level, which serves as a significant psychological point for traders to observe.
Importantly, data from Coinglass reveals that liquidations exceeding $461 million took place in the market.
Long traders, who anticipated a continued rise in Bitcoin’s price, bore the majority of the losses, with liquidations totaling $383 million. In contrast, short traders experienced losses of $78.54 million during the same timeframe.
Traders betting on further price increases for Bitcoin suffered the largest losses, exceeding $150 million, while Ethereum traders encountered around $10.5 million in liquidations.
This extensive liquidation across the market illustrates the volatility and risks that traders encounter in the cryptocurrency sector, particularly during times of significant price corrections.
Related Posts
Bitcoin awaits US inflation data
Market analysts also link Bitcoin’s decline to the wider economic landscape in the United States.
Analysts at Bitfinex observed that Bitcoin investors have taken a more cautious approach ahead of the release of the US Consumer Price Index (CPI). The CPI measures the average price change for goods and services and is a crucial indicator of inflation, reflecting the purchasing power of a currency.
The analysts conveyed to CryptoSlate that:
“With core inflation anticipated to be around 3.0–3.1% YoY, a higher-than-expected figure (e.g., core >3.2%) could postpone Fed easing, negatively impact market sentiment, and increase borrowing costs. This would bolster the dollar and diminish demand for non-yielding assets like Bitcoin, potentially prolonging the pullback by another 5–10%.”
Conversely, a softer CPI result could alter the market narrative, particularly if headline inflation falls below 2.5% and core trends towards 2.9%. They remarked:
“In May, we witnessed this scenario: a cooler CPI reading resulted in a significant rally across both equities and crypto. A similar outcome today could drive Bitcoin back toward $120K+ again, especially if ETF inflows continue to be strong as they have been over the past two weeks.”
The post Bitcoin slips below $120k amid US inflation concerns and $461 million liquidation storm appeared first on CryptoSlate.
