Crypto Market Faces Liquidations as US Inflation Surpasses Estimates

By: Isha Das

The crypto market has saw a liquidation of $164.52M over the past 12 hours following the release of new inflation data. In this, $119.88M were in long positions and $44.64M in short positions. The bulk of the total liquidations was accounted for by Bitcoin, which saw liquidations worth $48.31M.

This liquidation seems to be a consequence of the US Market Open, which appeared to be a bigger catalyst than the new inflation data. Bitcoin's value rose by 1 %, creating a new all-time high of $72,940, but it then witnessed a decrease down to $70,900 before returning to around $71,880.

Recently released US annual inflation data shows an unexpected increase to 3.2% in February, a growth from January’s 3.1%, and surpassing the prognoses of 3.1%. Also contributing to this was the monthly inflation rate that rose to 0.4% from 0.3%. Despite these stats, core inflation decreased slightly to 3.8% from 3.9% instead of the predicted 3.7%, with the monthly core inflation rate remaining steady at 0.4%.

An expert opinion suggests that these figures might not end the crypto bull market or significantly impact prices in the next few weeks. This can be attributed to the strong bullish momentum in the crypto space, showing resilience in the face of the inflation data.