With Bitcoin still below $80,000 and other altcoins suffering steep losses, Thursday’s crypto market was muted. After falling as low as $78,720 on Wednesday, the biggest cryptocurrency was lately trading around $79,800. Most importantly, it is still trading below the weekly open price of $82,500.
Rising Inflation Concerns and Global Political Tensions
The Producer Price Index (PPI) rose 6%, marking its highest annual level since 2022 and adding fuel to the fire of inflation fears, which has put pressure on risk assets after the release of high-profile inflation numbers from the US.
After reaching 50/100 on Monday, the Altcoin Season indicator retreated to 43/100, indicating that crypto investors are in a risk-off sentiment. Open interest (OI) fell 2% to $133 billion, indicating that some positions have been terminated amidst increasing trading activity, while futures volume over 24 hours jumped 14% to $189 million.
The great bulk of the 68% increase to roughly $400 million in liquidations came from long holdings. The current move effectively eliminated leveraged bullish wagers, according to this indicator.
Out of a total of $117 million in 24-hour BTC liquidations, $102 million were longs, demonstrating how biased positioning had become. This lends credence to the notion that market players were highly anticipating a price breakthrough over the 200-day moving average, which is located somewhat above $82,000.
During their first encounter at the Great Hall of the People, Xi pushed Trump on Taiwan, and the Chinese leader’s forthright words shook risk sentiment throughout the world. In the wake of the Trump-Xi meeting, Asian stock markets were volatile, and cryptocurrency prices fell.
Traders are keeping an eye on $78,000 as the next critical support level for Bitcoin, while most cryptocurrencies had a general decrease. Solana was the worst hit, while Dogecoin was the only one to show a little rise.
Highlighted Crypto News Today:
Massive US Spot Bitcoin ETF Outflows Shake Market Momentum
