The price of bitcoin fell to low range levels of $21.5k on Tuesday, in the midst of the publication of the Consumer Price Index. Despite this, it only lasted for a brief period of time and resulted in an equal number of long and short liquidations on BTC.
Market rose unexpectedly
After that, the market went through an unexpected uptick, although many people would have anticipated a decrease as a consequence of the CPI coming in lower than projected, which would have led to a loss of value. Instead, there was a fresh round of market inflation, which was just the reverse of what economists had thought the market would do.
There were a lot of people who lost their money, and there was no logical way to predict this pump.
However, this is supposedly what the cryptocurrency markets constantly do, proving everyone incorrect once they believe they can forecast it all. According to reliable sources, this action resulted in a big $23 million short liquidation, even though it was only a routine procedure.
It is important to consider that inflation fell for the sixth consecutive month in January. This drop, backed by lower prices for used autos, provided some solace to buyers who had been struggling with high prices over the previous year.
CPI shows a 6.4% increase in prices over the last year
The most recent figures from the consumer price index show that, over the previous year, there has been a rise of 6.4% in the costs of various products and services. The annual rate was 6.5% in December, but it reached a 40-year high of 9.1% in June. This number, however, shows a little reduction from that rate.
On a month-to-month basis, however, prices grew by 0.5% in January compared to a more modest growth of 0.1% in December. Again, costs associated with housing were the primary factor for the acceleration.
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