Bitcoin’s price fell to $66,000, triggering $250 million in crypto liquidations as traders brace for a crucial U.S. inflation report and Federal Reserve meeting. The market is on edge, anticipating significant volatility in response to economic data and interest rate decisions.
Key Takeaways
- Bitcoin’s price dropped to $66,000, causing $250 million in liquidations.
- Traders are preparing for the U.S. inflation report and Federal Reserve meeting.
- Altcoins also experienced significant declines.
- Market volatility is expected to continue.
Bitcoin’s Price Drop and Liquidations
Bitcoin (BTC) started the day trading near $70,000 but fell to a three-week low of $66,170 during the U.S. session. It slightly rebounded to around $66,500 but remained down nearly 5% over the past 24 hours. This sudden pullback led to over $250 million in liquidations of leveraged derivatives trading positions across all crypto assets, according to CoinGlass data.
Liquidations occur when an exchange closes a leveraged position due to a partial or total loss of the trader’s initial margin. This happens when the user fails to meet the margin requirements or doesn’t have enough funds to keep the position open.
Altcoins and Market Impact
Altcoins saw even deeper pullbacks during the same period. The CoinDesk 20 Index, a broad-market crypto benchmark, declined over 6%, with all twenty constituents in the red. Ethereum’s ether (ETH) broke below $3,500, down 6.5%, while solana (SOL), dogecoin (DOGE), Cardano’s ADA, and Chainlink’s LINK endured losses between 6% and 9%.
Reasons Behind the Pullback
One reason for the pullback is investors “de-risking” from crypto assets ahead of the May Consumer Price Index (CPI) report and the Federal Reserve meeting. Bitcoin has been highly responsive to economic data recently, with its 30-day correlation with U.S. equities climbing to the highest since 2022.
Market Expectations and Future Outlook
Investors will closely monitor the Federal Open Market Committee (FOMC) members’ interest rate outlook, known as the
Sources
- Bitcoin (BTC) Price Pullback to $66K Triggers $250M Crypto Liquidations Traders Braces for FOMC, CPI Report, CoinDesk.
- Bitcoin price today: down to $67k with Fed rate decision, CPI in focus By Investing.com, Investing.com.
- Stock Chart Icon, CNBC.
- Bitcoin (BTC) Price Falls Below $67K as ETF Inflow Streak Ends, CoinDesk.
- Bitcoin price dips ahead of US inflation report and Fed’s decision on interest rates, Forkast News.
