• Bitcoin’s price slips by over 2% in the past hour, trading at $67,670.
• Overall cryptocurrency market follows suit, led by BTC’s decline.
• US inflation data surpasses expectations, contributing to market downturn.
• Ethereum, Solana, Dogecoin, and XRP also register losses alongside Bitcoin.

The cryptocurrency market witnessed a notable downturn as Bitcoin’s price dipped below $68,000, marking a decline of over 2% within the last hour. This drop was accompanied by similar losses across other major cryptocurrencies, reflecting a broader market sentiment shift.

Inflation Data Sparks Market Retreat

The primary catalyst for the sudden decline appears to be the release of US inflation data, which exceeded expectations. With annual Consumer Price Index (CPI) inflation figures reaching 3.5% instead of the anticipated 3.4%, and monthly inflation at 0.4% compared to the expected 0.3%, investor concerns over rising inflationary pressures intensified. This development triggered a sell-off across various asset classes, including cryptocurrencies, as market participants adjusted their positions in response to the inflationary outlook.

Cryptocurrency Market Reaction

Bitcoin led the downturn, shedding over 2% of its value and settling at $67,670 at the time of reporting. Ethereum, Solana, Dogecoin, and XRP also experienced losses, with declines ranging from 1.88% to 3.11% within the same timeframe. The broader market sentiment downturn prompted a liquidation of approximately $70 million in the cryptocurrency market over the past hour, primarily concentrated in long positions.

Impact on Long Positions

Of the total liquidations, approximately $65 million occurred in long positions, indicating a significant unwinding of bullish bets amidst the market retreat. Bitcoin accounted for $16 million of these liquidations, followed by Ethereum with $12 million, Solana with $5 million, and Dogecoin with $2 million. The widespread closure of long positions underscores the prevailing bearish sentiment and highlights the cautious stance adopted by traders in response to the inflation-driven market volatility.