Why BTC Dump????
Bitcoin's price has been dropping significantly, with a 3.8% drop after Wall Street opened on Aug. 14, as markets reacted to the July Consumer Price Index (CPI) print in the United States and its implications for interest rate cuts in 2024 ¹. Here are some reasons why Bitcoin's price is dropping:$BNB
- *CPI fuels sudden price drop*: Bitcoin lost $3,000 in hours as the July print of the CPI report showed inflation rising at a rate that the market expected ¹.
- *Recession fears weigh down Bitcoin price*: Reacting to the latest events, capital markets commentator The Kobeissi Letter said that the CPI print marked the “first month with CPI inflation below 3.0% since March 2021” ¹.
- *Bitcoin long liquidations ramp up*: Market makers often take advantage of major macroeconomic events to liquidate Bitcoin traders ¹.
- *Bitcoin whales*: Crypto whales who began to deposit large volumes of their Bitcoin holdings to exchanges in order to cash in on BTC’s record highs ².
- *Derivatives trading*: The drop has been accompanied by a massive liquidation of multiple derivative positions, amounting to almost $2 billion ².
- *Regulatory uncertainty*: Rumors circulating that the U.S. Treasury Department is planning to implement a mechanism where they will become empowered to monitor the crypto-wallets of users ².