Crypto market analysis platform centimentAfter the announcement of the inflation figures that exceeded expectations, many investors expected a price decrease. Bitcoin (BTC) and altcoins you shortened shares the data.
According to Santiment cryptocurrency market, the most recently announced US Consumer Price Index (CPI) After the statistics, investors recorded a notable increase in short trades and an equally high amount of short liquidation.
Inflation News Causes Increase in Bitcoin and Altcoin Short Positions
After the inflation news BTC with a sharp fall 18,200 It fell to a daily low of around the dollar. However, it didn’t take long for the price to start rising. With this rise, those in short positions suffered losses.
Data from the crypto futures market monitoring tool Coinglass confirms this observation.
More than 136,000 traders lost more than $300 million in liquidation of futures contracts during the day.
In the last four hours, where BTC is currently trading around $19,600, futures liquidations 88.76%‘ came from short position investors.
According to Santiment, the price action in the crypto market was contrary to expectations.
Although analysts thought that BTC would move downward and it would be difficult to recover, the recovery within 1 day after the fall was positive for cryptocurrencies.
With the release of the data, it is an already known fact that volatile price movements are an “operation” to liquidate leveraged transactions. For this reason, it is recommended to stay away from leveraged transactions.
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