Why is the CPI good but Bitcoin and stocks are still crashing?

• Event: The US CPI dropped to 2.7% (lower than the forecast of 3.1%), great news for the market.

• Paradox: Bitcoin rose to $89,200 and then suddenly crashed to $85,000; US stocks also reversed similarly.

• Reason: It's not due to bad news, but due to leverage liquidation. Good news creates large liquidity, allowing big funds to execute large sell orders, triggering a series of liquidations of Long positions.

BTC

88,258.01

+0.05%