Crypto is Anxious Ahead of CPI!
Volatility is increasing in crypto markets ahead of the release of the US Consumer Price Index (CPI) data today. Investors are closely watching how the inflation data will affect the Federal Reserve's interest rate policies and its impact on crypto assets.
Bitcoin (BTC) fell 1.83% to $102,489 in the last 24 hours. BTC, which rose as high as $105,525 during the day, fell to $101,065.
Ethereum (ETH) is trading at $2,453.76, down 2.48%. Its intraday high was $2,600.58, while its low was $2,425.28.
🧾CPI Data and Expectations
US April CPI data will be released today. The market expectation is for annual inflation to remain stable at 2.4%. However, Truflation data shows that inflation is at 1.68%.
If the data comes in below expectations, this may strengthen expectations that the Federal Reserve may cut interest rates and increase demand for risky assets. This may trigger upward movements in crypto markets.
Liquidations and Market Reaction
A total of $730 million worth of positions were liquidated in the crypto markets in the last 24 hours. 73% of these liquidations were long positions.
This shows that investors are closing their positions to reduce their risk ahead of the CPI data.
Liquidations: Traders should be wary of volatility and manage their risks.
Technical Levels: Indicated support and resistance levels may be important for short-term trading strategies.
Traders are advised to carefully monitor market reactions following the release of CPI data and pay attention to risk management.
