Nearly $1 billion in crypto positions liquidated as inflation data reignites Fed rate-hike expectations, triggering Bitcoin volatility.
Macro & Markets ·
Bitcoin declined to just over $80,000, marking the first time the asset tested that level in roughly a month, as weakness across Asian equity markets weighed on price action. The move coincided with the release of September Consumer Price Index data that came in above expectations, fueling concern about a potential Federal Reserve rate increase and triggering a sharp sell-off in Bitcoin and related asset classes.
The downturn resulted in nearly $1 billion in liquidations across the market, with Ethereum also sustaining material losses as leveraged positions unwound. The timing of the decline during Asian trading hours underscored the interconnected nature of crypto and broader risk assets, as equities tumbled alongside digital currencies.
It remains unclear whether Bitcoin will find support at $80,000 or face further downward pressure. The relationship between macro economic data and crypto sentiment continues to shift as investors reassess positions in response to inflation readings and monetary policy expectations.