🔹Why did the crypto market crash today (14 August)?
A crypto market crash is underway today, August 14, just hours after Bitcoin surged to a new all-time high.
🔸Bitcoin price erased its earlier gains and tumbled to $117,000, while top tokens like SPX6900 spx, Dogwifhat WIF, Celestia TIA, and The Graph dived by over 10%.
The ongoing crash triggered a 91% jump in liquidations, totaling over $1 billion. More than 216,000 traders were liquidated.
📉Crypto market crash linked to Fed interest rate cut odds
🔸The crypto and stock markets retreated as the odds of a September interest rate cut declined slightly. Polymarket data placed these odds at 73% down from this week’s high of 80%.
🔸Similarly, the CME FedWatch tool shows that the odds dropped from a high of 99% on Wednesday to 90.6%. These odds declined after the US published the July producer price index data, which were higher than expected.
🔹The PPI report came two days after the bureau released consumer inflation data. The headline CPI remained at 2.7%, while the closely watched core figure rose to 3.1%, moving further away from the Fed’s 2% target.
Surging liquidations contributed to the crypto crash
The crash was also fueled by a spike in liquidations, which add selling pressure to the market. Data from CoinGlass shows total futures open interest peaking at over $215 billion, with the funding rate climbing to +0.0105%.
These figures indicate that most traders were positioned long as Bitcoin and altcoins surged earlier in the day.
📉Bitcoin price double-top pattern
🔹Technically, the plunge followed the formation of a double-top pattern, with the neckline at $112,000. This setup often signals more downside, as it reflects investor hesitation to push prices above the previous high.
🔹Worse, Bitcoin has also formed a bearish divergence pattern, which is marked by a large bearish candle following a smaller bullish one. This suggests BTC could fall toward the 50-day moving average, which would likely drag top altcoins lower as well.
#BTCPrediction $BTC