Bitcoin slip down under $79K after PPI shock wey trigger $304M long liquidations
Bitcoin drop comot under $79,000 on May 13 after US producer price index (PPI) waka cool — e show say wholesale inflation dey accelerate pass wetin people expect. Di day low reach $78,704, after BTC don dey trade above $81,000 earlier and e still down about 1% for di day.
Derivatives data from Coinglass show say di sell-off trigger about $94M for BTC long liquidations, while short liquidations na around $7.5M. For total, about $304M longs wipe comot versus about $71M shorts — na leverage-driven risk-off purge wey concentrate for long positions.
Macro context tighten expect for rate-cut. Markets react to hotter inflation prints (CPI too come higher than expect) plus comment from Boston Fed President Susan Collins wey talk say dem fit need tighten more to return inflation close to 2%. Even though prediction markets still price June Fed pause near 100%, overall tone remain cautious. Geopolitical uncertainty add more waka to di risk-off background.
For traders, di immediate trigger clear: Bitcoin price action dey reinforced by long-liquidation dynamics and reduced odds of near-term easing. Watch whether Bitcoin fit stabilize above di prior $80K–$82K area; if no, cascading leverage flows fit keep downside pressure high.
Bearish
Di PPI shock cool down di rate-cut expectations an plus reinforce risk-off move, wey for Bitcoin mean say e clear breakdown under $79,000. Di derivatives reaction sef one-sided: about $304M for BTC long liquidations vs about $71M short, show say leveraged longs dem force commot. Dat combination dey usually put pressure for price short-term, especially if buy-side support no hold around di recent $80K–$82K area.
For di longer term, di article talk say di Fed path fit remain restrictive if inflation no dey continue dey ease towards 2%, wey go limit upside momentum for risk assets like Bitcoin. Even though probability for June pause high, market dey react to di possibility of further tightening, and dat dey usually keep rallies capped till inflation data and rate expectations stabilize.