Crypto Prices Drop 2.1% with $1B in Long Liquidations
Crypto prices declined on Thursday following a higher-than-expected PPI inflation report. The CoinDesk 20 Index dropped by 2.1%, with Bitcoin down 2.3%, XRP losing 4.6%, and Ether decreasing by 0.7%.
Key points:
- The decline is viewed as a normal pullback amid a bullish trend.
- Bitcoin’s price reached over $124,000, driven by expectations of Federal Reserve interest rate cuts and increased ETF inflows.
- The recent drop to $118,000 is characterized as healthy consolidation rather than a reversal.
- Profit-taking was noted among short-term traders, leading to over $1 billion in leveraged positions being liquidated.
- The largest liquidation since late July saw many long positions impacted.
- Future risks include valuation overextension and economic data affecting Fed projections.
