Unraveling Bitcoin’s (BTC) Unexpected Price Drop: Predicting the Cryptocurrency’s Future Value

  • Bitcoin price struggles to maintain upside momentum following new US consumer inflation expectations data, leading to a $212 million liquidation in the crypto market.
  • Federal Reserve Vice Chairman Phillip Jefferson and Fed’s Loretta Mester express mixed outlook on inflation.
  • Bitcoin miners face capitulation risk as trading volumes plummet.

Bitcoin price falls in response to US inflation data, leading to a $212 million liquidation in the crypto market. Federal Reserve officials express mixed outlook on inflation, while Bitcoin miners face capitulation risk.

Bitcoin Price Reacts to US Inflation Data

Bitcoin price started falling and paring earlier gains after new macroeconomic data, signaled that macro factors are key drivers of the Bitcoin price currently. The latest pullback in BTC price was a result of US consumer inflation expectations data. The inflation expectations for the year ahead came at 3.3%, the highest since November, from 3% in each of the previous four months. Moreover, the inflation expectations for five-year horizon increased to 2.8% from 2.6%.

Federal Reserve Officials Express Mixed Outlook on Inflation

The hotter inflation remains a concern for the FOMC members, with Federal Reserve Vice Chairman Phillip Jefferson and Fed’s Loretta Mester expressed mixed outlook on inflation and rate cuts. CoinOtag recently reported University of Michigan consumer sentiment data caused BTC price to tumble below $61,000 as inflation expectations for the year ahead rose to 3.5% and the five-year inflation outlook hit 3.1% from 3.0%.

Crypto Market Saw Over $210 Million Liquidation

Coinglass data shows more than $212 million were liquidated across the crypto market in the last 24 hours. Among this, $132 million long positions were liquidated and nearly $80 million short positions were liquidated. Most of the liquidation happened in the last hour, which was recorded at over $50 million.

Bitcoin Miners Face Capitulation Risk

Bitcoin miners are facing significant capitulation risk after the recent Bitcoin halving of block subsidies and relatively low transaction fees. The trading volumes have also plummeted and caused a further increase in risks. On-chain analyst Maartunn said, “This is likely to cause substantial strain, especially for less efficient miners.”

Conclusion

Bitcoin price is likely to remain under pressure and volatile due to the mixed outlook on inflation by Federal Reserve officials and the recent US consumer inflation expectations data. The crypto market saw a significant liquidation, and Bitcoin miners face capitulation risk due to the recent Bitcoin halving of block subsidies and relatively low transaction fees.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Ethereum (ETH) Whale Buys 25,000 ETH for $112.34M in USDC at $4,493 Following Fed 25bp Rate Cut

On September 18, COINOTAG News reported, citing LookIntoChain monitoring,...

Whale Profits $74.92M Scalping ETH — Buys 18,000 ETH with $80.77M USDC via Wintermute, Sparking Rebound to $4,600

COINOTAG reported on September 18 that on-chain analyst yujin...

BlockBeats: ‘Buddy’ Holds 20,400 ETH Longs — $4.23M Floating Profit Across ETH, PUMP & HYPE (Sep 18)

COINOTAG reported on September 18 that monitoring data from...

Vitalik Defends Ethereum’s 45-Day ETH Staking Withdrawal Rule: “Friction Upon Exit Is Inherent”

COINOTAG reported on September 18 that Ethereum co-founder Vitalik...

SEC Approves CBOE, Nasdaq and NYSE to Fast-Track Spot Bitcoin ETP Listings Under Universal Standards

COINOTAG reported Sept. 18 that the U.S. Securities and...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img