Here’s Why the Crypto Market is Falling
On August 14, 2024, investors and institutions had their eyes on the United States Consumer Price Index (CPI) data, which came in lower than expected. According to the recent report, the US CPI is 2.9%, below the expected 3%, marking its lowest point since April 2021.
Why Crypto Market is Falling?
Following the CPI data, the overall cryptocurrency market turned green, and top assets soared significantly, though they are now experiencing mild selling pressure.
After a significant price rally, market makers took advantage of the CPI data as top assets including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) experienced impressive price surges of 4.3%, 4.5%, and 3.7%. However, this has created mild selling pressure in the market.
Market makers are the ones who often take advantage of major macroeconomic events to liquidate traders.
Bitcoin and Ethereum Price Performance
At press time, BTC is trading near the $59,900 level and has experienced a price drop of 2.3% in the past hour. Meanwhile, it reached the $61,680 level during the same period. However, it is currently up by 1% in the last 24 hours.
On the other hand, ETH is trading near the $2,660 level and has experienced a price decline of over 2.7% in the past hour. It also reached a high of $2,775 level during the same period.
Major Liquidation Following CPI Release
Amid this significant fluctuation and volatility, BTC traders have liquidated over $14.81 million worth of short and long positions in the past hours. Whereas, ETH traders have liquidated a massive $15.3 million worth of short and long positions during the same period, according to the data from the on-chain analytic firm CoinGlass.
The intraday high of these top assets was observed following the release of the CPI data. Since then, the market has experienced selling pressure. However, there is hope that this mild selling pressure will be for a short period and that the market will soon recover swiftly.
