Reserve

bullish

Bitcoin

when

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-price-falls-after-us-cpi-data" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Falls After US CPI Data</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/bitcoin-climbs-amidst-market-fluctuations-as-inflation-concerns-persist" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a>‘s price took a significant hit, dropping by 3.8% shortly after Wall Street opened on August 14. The decline was a response to the latest US Consumer Price Index (CPI) <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data</a> for July, which has implications for potential <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">interest rate</a> cuts in 2024. According to TradingView, Bitcoin plummeted from $61,809 to a daily low of $58,883 within a mere three-hour window. Simultaneously, the daily trading volume surged by 5%, hitting $32.12 billion.</p>
<h2 id="why-did-bitcoin-react-to-the-cpi-data">Why Did Bitcoin React to the CPI Data?</h2>
<p style="text-align: justify">The July CPI report indicated a 0.2% rise in month-on-month inflation, following a 0.1% decrease in June. The annual inflation rate reached 2.9%, marginally lower than the 3% forecast. Notably, this was the smallest 12-month increase since March 2021. The data turned out to be unfavorable for Bitcoin and other cryptocurrencies, which have generally thrived on bullish macroeconomic sentiments.</p>
<p style="text-align: justify">Market watchers have now turned their attention to the upcoming Federal Open Market Committee (FOMC) meeting, scheduled for September 18. The expectation is that the Federal Reserve could announce its first rate cut since March 2020. Information from CME’s FedWatch tool suggests a near-certain probability of a rate cut ranging from 0.25% to 0.5% in September.</p>
<h2 id="what-are-the-market-makers-doing">What Are the Market Makers Doing?</h2>
<p style="text-align: justify">Market makers often seize on significant macroeconomic events to liquidate Bitcoin positions. The sharp decline to $58,883 was mirrored by a substantial move in the Bitcoin futures market. According to Coinglass, over $22.26 million in long Bitcoin positions were liquidated on August 14 alone, with continued activity throughout the day.</p>
<p style="text-align: justify">In the past four hours, more than $25.94 million in long Bitcoin positions were liquidated. Total liquidations in the broader crypto market reached $143.66 million, with long positions accounting for $85.6 million of that sum. Such liquidations typically happen when the price of an asset drops suddenly, causing losses to bullish investors holding long positions.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify">– Bitcoin’s price is highly sensitive to macroeconomic indicators like CPI data.<br> – Market makers can exploit these events to trigger liquidations.<br> – Investors need to closely monitor Federal Reserve meetings for potential rate cuts.<br> – Significant buy orders exist at around $58,700, which may provide support.</p>
<p style="text-align: justify">Bulls should be cautious of a possible further drop to $58,700, where substantial buy orders are placed, totaling over $91.27 million. Keeping an eye on macroeconomic indicators and Federal Reserve actions will be crucial for navigating the coming months in the crypto market.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-price-falls-after-us-cpi-data" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Falls After US CPI Data</a></h5>

Bitcoin Price Falls After US CPI Data

Table of Contents

BH NEWS

Other articles published on Aug 14, 2024

New Step from Iran to Block Cryptocurrency Mining: They Will Give 20 Dollars to the Whistleblower

The Sandbox Begins an Exclusive Collaboration with SSC Napoli

Federal judge allows key claims in AI copyright case to proceed

Developers Integrate Shibarium with Cards

Thorchain News: Why is the Thorchain (RUNE) price up?

Avatar.One’s 3D AI Companions Empower 120K+ Users to Combat Loneliness

Join our free newsletter for daily crypto updates!