Yuri Molkhan
The leading digital currency briefly falls below the $30,000 level in the new CPI report, while the market liquidates $406 million in an hour
Bitcoin has lost 4% of its price in just an hour since the US CPI report was released in April, falling below the crucial $30,000 mark. The document shows that the inflation rate has turned out to be higher than initially expected.
$406 million in crypto trades were liquidated
Within an hour, the total liquidations amounted to nearly half a billion dollars – $406,065,000.
On Binance alone, a total of $158.866 million in long positions were liquidated, and OKEx saw $139.603 million worth of liquidations.
With the release of higher-than-expected CPI in the United States, Bitcoin fell below $30,000, down 4% in one hour, and Luna was close to $1. The liquidation amount across the network in one hour reached $200 million. Coinbase fell 25% in premarket trading.
— Wu Blockchain (@WuBlockchain) May 11, 2022
CPI 8.3% – higher than expected
The April CPI (Consumer Price Index) report was supposed to show that the US economy had already passed through an inflation peak, which would likely have calmed the market for a while.
To sue
However, the report shows an increase of 0.2% in April, which is 8.3% yoy. The latter indicator should increase by only 8.1%. Core inflation rose 0.6% last month, 0.3% higher than in March.
If Bitcoin falls below $30,000, $10,000 will follow: Peter Schiff
In January, as the largest cryptocurrency fell to $35,000, prominent bitcoin hater Peter Schiff shared that if BTC falls below $30,000, it would extend its decline below the $10,000 zone.
He reiterated this expectation on May 9, launching a Twitter poll to see how many of his followers would hold their BTC should it fall below $30,000 and how many would sell.
Back then, 54% of respondents wanted to hodl their BTC.
Bitcoin recovers to $31,200
As reported by U.Today, Schiff also shared his expectation that a massive crypto sell-off would follow if Bitcoin fell to $37,000.
The reason for this, according to Schiff, was that traders would start selling their cryptos for fiat to pay for rapidly increasing household bills.
Meanwhile, Bitcoin has rallied to the $31,200 area, printing a large green hourly candle.
Image via TradingView
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