Why the Crypto Market Is Declining
On August 14, 2024, investors closely monitored the U.S. CPI data, which was reported at 2.9%, lower than the anticipated 3% and marking the lowest level since April 2021.
Why Is the Crypto Market Falling?
After the CPI data release, the cryptocurrency market initially turned positive, with top assets seeing significant gains. However, this rally led to a wave of mild selling pressure.Market makers, known for capitalizing on major economic events, took advantage of the situation, driving up prices for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) by 4.3%, 4.5%, and 3.7%, respectively. This surge eventually triggered selling pressure across the market.
Bitcoin and Ethereum Price Movements
As of now, BTC is trading near $59,900, a drop of 2.3% in the past hour, after reaching a high of $61,680. Despite this, it remains up by 1% over the last 24 hours.
ETH, on the other hand, is trading close to $2,660, with a decline of over 2.7% in the past hour, following a peak of $2,775.
Major Liquidations After CPI Release
Amid this price volatility, BTC traders have liquidated over $14.81 million in short and long positions, while ETH traders have liquidated $15.3 million, as per on-chain data from CoinGlass.
The price highs observed after the CPI data release have since led to market-wide selling pressure. However, there is optimism that this pressure will be short-lived and that the market may recover quickly.
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