Cryptocurrency Market Slumps on Hot Producer Inflation Numbers
The cryptocurrency market saw a decline on Thursday following hotter-than-expected producer inflation numbers. This led to increased bets for rate hikes, which in turn dampened investors' risk appetite and caused selling pressure to accelerate.
Bitcoin fell below $77,000, with Ethereum lingering around the $2,400 mark despite a 10% spike in volume over the past 24 hours. The cryptocurrency-related stocks Strategy Inc. (MSTR) and Bitmine Immersion Technologies Inc. (BMNR) also closed down, with MSTR losing 3.12%.
A total of over $450 million was liquidated from the market in the last 24 hours, with $359 million being bullish long positions that evaporated. Bitcoin's open interest fell by 0.47% and more than 8% over the week.
According to CryptoQuant, retail's 'Greed' sentiment is being used as exit liquidity, with whales and algorithms taking advantage of this euphoria to offload their lots onto late buyers.