Bitcoin Falls as Hot US CPI Sparks $455M in Crypto Liquidations
Bitcoin fell 2.19% to about $81,605 after hotter-than-expected US inflation data strengthened expectations of a Federal Reserve rate rise. Ethereum dropped 3.93% to $2,412, while SOL and XRP also declined. The total crypto market value fell 4.84% to around $2.76 trillion.
About $455 million in crypto positions were liquidated over 24 hours, including $398 million in long positions. Nearly 110,000 traders were liquidated, and Ethereum long liquidations slightly exceeded Bitcoin’s. The Crypto Fear and Greed Index fell from 62 to 53, moving back into neutral territory.
Bitcoin was trading near support around $81,200, while Ethereum approached support near $2,408. Traders are watching inflation and the Fed’s rate outlook for clues to the next move in Bitcoin and the wider crypto market.
Bearish
The immediate market signal is bearish. US CPI and core CPI both came in above expectations, lifting rate-hike bets and weighing on technology shares and other risk-sensitive assets. Bitcoin fell below the prior session’s rebound, while Ethereum and several major altcoins posted steeper losses. The $455 million liquidation total was heavily concentrated in long positions, suggesting leveraged traders were caught on the wrong side of the move. Bitcoin’s price was near its 50-day average and lower Bollinger Band; Ethereum was near its lower band, with its RSI indicating weaker momentum. These levels may attract buyers, but a sustained break could prompt further selling and liquidations.
Similar inflation surprises have often triggered short-term declines in crypto as traders reassess interest rates and reduce leverage. If inflation concerns persist or the Fed signals tighter policy, higher yields and a stronger preference for safer assets could keep pressure on Bitcoin and especially more volatile altcoins. Conversely, a cooling inflation outlook or a clear defense of support levels could encourage a relief rebound. Over the longer term, the effect depends on the path of rates, liquidity and investor demand; this report alone does not establish a lasting change in crypto’s broader trend.