📍Main Reasons
1. High U.S. inflation data and bleak political outlook
Today, inflation data in the United States was released, coming in higher than expected, igniting concern among investors regarding monetary policy. After Bitcoin had reached a peak of around $124,480, it fell by about 4%, recording around $118,000.
🔸Additionally, Treasury Secretary Singh spoke about the halt in Bitcoin purchases by the U.S. Treasury, which increased downward pressure.
2. Massive liquidation of positions from trading sites
Speculators who took heavy long positions suffered widespread liquidations amounting to about $1 billion, the largest since early August, leading to a rapid decline in prices.
Bitcoin also witnessed a sudden drop from over $121,000 to less than $118,000 in minutes, as a result of the closing of these positions.
3. Expiration of massive options
With over $6.2 billion in options contracts for Bitcoin, Ethereum, and Ripple nearing expiration, traders are anticipating additional volatility, which has intensified market tension.