Bitcoin (BTC) Hits New ATH With CPI Inflation Data, But Corrects Soon Resulting in Major Liquidations

By Bhushan Akolkar
Published November 11, 2021 Updated November 11, 2021
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Bitcoin (BTC) has already dipped below $60,000, but overall BTC price action suggests that the amazing 2017 bull run is still in play

Bitcoin (BTC) Hits New ATH With CPI Inflation Data, But Corrects Soon Resulting in Major Liquidations

By Bhushan Akolkar
Published November 11, 2021 Updated November 11, 2021

On Wednesday, November 10, the Bitcoin price shot up significantly to a new all-time high of $69,000 soon after the U.S. reported a 6.2% surge in the Consumer Price Index (CPI). This shows that inflation in the United States has been growing up at the fastest rate since the 1990s.

The rise in the BTC price was pretty obvious considering that the digital asset serves as a strong inflation hedge. Sui Chung, chief executive of CF Benchmarks told Bloomberg that Bitcoin has been enjoying a sustained rally over the last few months and much recently on the launch of the Bitcoin Futures ETF last month.

But Chung adds that the rising inflation across all the major global economies of the world can provide an additional fuel to the Bitcoin price rally. Some of the biggest players on Wall Street have been participating in this Bitcoin price rally owing to the onflation fears.

Furthermore, Bitcoin’s hedge rival Gold has largely underperformed as an inflation hedge over the last year and so. As a result, Bitcoin is finding more acceptance among big players.

Bitcoin (BTC) Enters Sharp Correction

Although the BTC price topped $69,000 on Wednesday, it sustained for a very short period. Bitcoin entered a sharp correction dropping nearly 10% all the way to the bottom of $64,000. This resulted in massive liquidations across the market. As explained by crypto journalist Wu Blockchain:

In the past 12h, Bitcoin broke through 69,000 and then began to fall to a minimum of 64565. The short-term rise and fall resulted in over 450 million U.S. dollars in liquidation within 4 hours, and over 680m in 12-hour liquidation.

The journalist further explains that the decline in the BTC price followed the sharp correction in the U.S. stocks. The Nasdaq Composite (INDEXNASDAQ: .IXIC) tanked 1.66% by the closing hours of the market. It will be interesting to see whether if BTC finds a base at $64,000 and starts its upwards journey from here on.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
895 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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