Bitcoin (BTC) experienced a sharp decline, reaching about $67,500. In monthly terms, according to the U.S. Department of Labour, inflation accelerated by 0.4%, significantly higher than the value from February. The inflation rate figure continued to rise for the third consecutive month since January.
Jerrymusa.com reports that following the release of data on inflation, the price of Bitcoin dropped below $68,000. There had previously been a downturn in BTC, which prompted a wave of liquidations in subsequent contracts. Data from CoinGlass shows that liquidations totaled $311 million, with a notable predominance of long positions.
Bitcoin Rallys at 67,700 Price
Bitcoin is currently trading at about $67,700, having somewhat recovered from its steep drop. Over the previous day, trading volumes rose by 7% to $35.6 billion.
Inflation is measured by the consumer price index. Fiat currencies, such as the dollar, lose purchasing power as the CPI rises to high levels. Although some people view Bitcoin as a safe refuge for wealth, there isn’t always a clear-cut, positive association between CPI and the price of Bitcoin in real life. The volatility of the digital asset market is a defining feature.
QCP Capital analysts warned at the end of March that rising US inflation rates may cause a medium-term drop in Bitcoin.
QCP researchers predicted that capital inflows into the spot Bitcoin ETF market would decline. The asset price fell below $61,000 as a result of the indicator’s “inadequate” drawdown upon entering the red zone.