The latest data on the Consumer Price Index (CPI) for March released by the US Department of Labor exceeded market expectations, leading to a short-term slump in the cryptocurrency market. However, the whales actively bought in during the market downturn, seemingly causing Bitcoin and Ethereum to experience a brief retreat before experiencing volatile upward movement.
Bitcoin and Ethereum briefly experienced a downturn before rebounding
Whales bought 35.82 million ETH
Long and short positions liquidated with $250 million in the past 24 hours
Yesterday evening at 20:30, the US Department of Labor released the latest CPI data, revealing a year-on-year increase of 3.5% and a month-on-month increase of 0.4% for March CPI in the United States. Core CPI increased by 3.8% year-on-year and 0.4% month-on-month, all of which exceeded expectations.
This further discounted market expectations of an interest rate cut by the Federal Reserve, resulting in a sharp decline in both the stock market and the cryptocurrency market.
According to data from the Binance spot market, Bitcoin dropped by 2.05% from $68,972 to $67,560 within 15 minutes after the inflation data was released. However, Bitcoin quickly initiated a volatile upward movement and reached $71,000 in the early morning today, with the latest report showing a price of $70,768, a 2.03% increase in the past 24 hours.
The price movement of Ethereum mirrored that of Bitcoin, experiencing a 3% decline last night and dropping to a low of $3,411.82 before rebounding to $3,546 at the time of writing, a 0.74% increase in the past 24 hours.
In the context of the Federal Reserve’s possible delay in loosening monetary policy, why did the prices of Bitcoin and Ethereum instead turn upward? On-chain data suggests that this may be related to “whales buying in at low prices.”
According to monitoring data from Lookonchain, around 11 o’clock last night, a whale bought 10,309 ETH (approximately $35.82 million) during the market downturn. Prior to this, before BTC’s rise on April 8, the same whale also bought 10,643 ETH (approximately $36.75 million), demonstrating their skill in buying at lows.
In addition, the X account Material Indicators pointed out this morning that whales with holdings ranging from $100,000 to $1 million are actively buying Bitcoin during price declines. They may be optimistic about the upcoming halving next week and are choosing to position themselves in advance.
According to data from Coinglass, the cryptocurrency market has liquidated $250 million in the past 24 hours, with 90,298 investors being liquidated. Long positions accounted for $152 million in liquidations, while short positions accounted for $101 million. The total liquidation amounts for Bitcoin and Ethereum were approximately $76.48 million and $47.83 million, respectively.
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