$290,000,000 in Bitcoin and Crypto Liquidated As Inflation Data Pummels Markets
Nearly $300 million worth of Bitcoin (BTC) and other crypto assets have disappeared from the markets as inflation continues to surge.
According to crypto data aggregator Coinglass, the digital assets market is in the middle of a massive liquidation.
Liquidations that move markets happen when large numbers of traders have insufficient funds to keep a leveraged trade open.
Part of the reason for the massive crypto exodus is the latest data revealed by the consumer price index (CPI), which measures the rate at which the prices of goods and services in the US economy are rising.
According to the U.S. Bureau of Labor Statistics, the current CPI is spelling bad news for the US economy.
The new consumer price index data is worse than expected as the markets anticipated year-over-year inflation to be at 8.1%, but the number came in at 8.3%.
The poor numbers mean Federal Reserve Chairman Jerome Powell is likely to continue raising rates longer than investors hope, which increases the cost of borrowing funds throughout the economy and puts pressure on leveraged positions.
BTC is down over 6% over the last 24 hours and is currently changing hands for $20,803. Ethereum (ETH) is down over 7% over the same span, trading for $1,597 at time of writing.
Following suit, the total crypto market cap (TOTAL) is currently down 5.3% over the last 24 hours.
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