Bitcoin, Ethereum Tumble Amid Inflation Data Anticipation
Crypto markets took a hit on Tuesday as traders awaited key inflation data for clues on the Federal Reserve's interest rate policy. Bitcoin slid below $78,000 with trading volume jumping nearly 50% in the last 24 hours. Ethereum's advance stalled at $2,500, while Dogecoin fell sharply after Monday's jump.
Crypto-related stocks also took a hit, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing down 4.40% and 0.80%, respectively. Strategy made no Bitcoin purchases last week. More than $250 million was liquidated in the cryptocurrency market over the past 24 hours, including $163 million in long positions.
Bitcoin's open interest rose 0.70% in the last 24 hours to $53.45 billion. A rise in open interest combined with a falling spot price typically signals a short buildup, meaning new sellers are actively entering the market.