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U.S. consumer inflation hit a 40-year high of 9.1% on Wednesday sending cryptocurrency markets plummeting briefly.
What Happened: According to data from Benzinga Pro, Bitcoin BTC/USD plunged from $19,898 to a low of $18,999 after the numbers were released.
It was just announced that US inflation surged to 9.1%, the highest level in over 4 decades. Wow.
Immediately after, #Bitcoin plummets to new lows. And maxis still claim this thing is an “inflation hedge” lol pic.twitter.com/z5H6t3sozZ
— CryptoWhale (@CryptoWhale) July 13, 2022
The immediate aftermath of the sudden and sharp decline was a series of cascading BTC long liquidations. According to on-chain liquidation data from CoinGlass, $17.6 million Bitcoin longs were liquidated within 60 minutes of the negative price action.
Over $18 Million in #Bitcoin Long Liquidations in 35 Minutes after the CPI news pic.twitter.com/22EiaGaiyn
— On-Chain College (@OnChainCollege) July 13, 2022
Bitcoin reversed much of the negative price action brought about by the inflation data in the hours that followed. The leading digital asset reclaimed the $20,000 price level, rising 5% over 24 hours.
This price reversal subsequently led to another set of liquidations over a 60-minute time frame — this time with $10.45 million worth of shorts liquidated.
Price Action: According to data from Benzinga Pro, at press time, Bitcoin was trading at $20,125. Ethereum ETH/USD was trading at $1,107 and Dogecoin DOGE/USD was trading at $0.06.
Photo via Igor Batrakov on Shutterstock
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Image and article originally from www.benzinga.com. Read the original article here.