Bitcoin and Ethereum experienced a sharp decline, dropping over 4% after reaching new all-time highs. This came amid unexpected inflation data from the US, leading to significant market liquidations.
Overview of BTC and ETH Decline
Bitcoin (BTC) and Ethereum (ETH) reached all-time highs but sharply reversed, exceeding a 4% drop. Total liquidations surpassed $1 billion, as confirmed by Coinglass.
Reaction to Inflation Data
The US Producer Price Index inflation data was unexpectedly high, triggering widespread selling across the crypto market. Key projects impacted included BTC, ETH, and major altcoins such as XRP and Solana. US Treasury Secretary Scott Bessent remarked that the government will not buy Bitcoin for the Strategic Reserve.
Long-term Market Implications
Despite short-term volatility, institutional interest in cryptocurrencies remains strong. Further fluctuations are anticipated, heavily influenced by upcoming economic indicators and regulatory changes.
The decline in BTC and ETH prices highlights the cryptocurrency market's sensitivity to macroeconomic trends. The US inflation data and trader reactions suggest potential changes in the future.
