Why is Bitcoin price volatile today? đ
On Aug. 12, $BTC dropped to $57,653, bringing its 24-hour losses to 2%, as traders positioned themselves ahead of a busy week filled with macroeconomic data. The bullish momentum that propelled BTC above $60,000 at the end of last week is in question as bears and bulls fight to control the price.
Letâs look at the factors affecting Bitcoin price today.
â«ïž Traders feel unsure about US inflation figures ;
Following the market volatility experienced during the week ending Aug. 11, this weekâs US Consumer Price Index (CPI) and Producer Price Index (PPI) prints are expected to reveal the latitude the Federal Reserve has to meet pumped-up expectations around its first interest rate cut in September.The CPI is expected to continue falling, which should empower the Fed to consider the all-important rate cut. Macro market events tend to move crypto prices as they reveal the general state of the economy.
â«ïž Bitcoin price has been a âroller coasterâ ;
After a relatively calm weekend, Bitcoinâs price action remained flat during the early Asian trading sessions and part of the European session on Aug. 12, oscillating between $58,130 and $59,000. The price then jumped suddenly from $58,140 to $60,000 in less than two hours before rapidly undoing all these gains just before the start of the New York session.The price then jumped up again on the Wall Street opening, rising 5% from a low of $57,834 to set a swing high at $60,700.
â«ïž Bitcoin liquidations ramp up ;
A sharp movement in the Bitcoin futures market appears to have caused BTCâs price volatility over the last 12 hours. The timing of the short liquidations coincided with the sharp rise in the price of the pioneer cryptocurrency.Data from Coinglass shows that more than $20.16 million in BTC short positions have been liquidated over the last 12 hours. The total liquidations across the crypto market amounted to $112.20 million, with $61.84 million being short liquidations in the same period.
