June 16, 2024

$67,500! Bitcoin collapses and liquidates thousands of traders.

12h30 ▪
min of reading ▪ by
Luc Jose A.

Bitcoin has abruptly fallen below $68,000, causing a massive liquidation that affected over 75,000 traders. This unexpected decline comes amidst significant outflows from Bitcoin ETFs and growing economic uncertainties, fueled by anticipation of US inflation data and the upcoming Federal Reserve meeting.

Le Bitcoin chute encore et encore

Bitcoin Plunges Below $68,000

Bitcoin, the king of cryptos, has undergone a severe correction, dropping within minutes from nearly $70,000 to $67,500, its lowest level since June 3. This rapid drop led to the liquidation of over 75,000 traders, with total losses estimated at around $170 million. Most of these liquidations involved long positions.

Meanwhile, Bitcoin ETFs recorded net outflows of $64.9 million after 19 days of positive inflows. The Grayscale Bitcoin Trust was particularly affected, with an outflow of $39.5 million, followed by the Invesco Galaxy Bitcoin ETF with $20.5 million. In contrast, some ETFs, like the Bitwise Bitcoin Fund and BlackRock’s iShare Bitcoin Trust, saw modest inflows of $7.6 million and $6.3 million respectively.

Anticipation of US Inflation Data

The recent drop in Bitcoin comes in a context of strong anticipation of crucial economic data in the United States, particularly those related to inflation. Analysts expect a 0.1% increase in the Consumer Price Index (CPI) for May, following a 0.5% rise in April. This slight increase would bring the annual inflation rate to 3.4%, while core inflation, which excludes volatile food and energy prices, is expected to rise by 0.3%.

The release of inflation data is critically important as it directly influences the Federal Reserve’s (Fed) monetary policy decisions. Persistent or rising inflation could prompt the Fed to maintain its high interest rates or even raise them. Currently, interest rates are at a high level of 5.25% to 5.5%, a 23-year peak. This restrictive monetary policy aims to control inflation but also exerts downward pressure on risky assets like Bitcoin.

Maximize your Cointribune experience with our ‘Read to Earn’ program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.

Click here to join ‘Read to Earn’ and turn your passion for crypto into rewards!

Luc Jose A. avatarLuc Jose A. avatar

Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *