Bitcoin rebounds to $82,000 after briefly falling below $80,000 as inflation fears trigger $950 million in liquidations
AgenciesIn the past 24 hours, Bitcoin was up 1.05% and Ethereum was up 3.37%. Among the major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin and Cardano gained upto 4.20%.
Prateek Gupta, Head of Business, Mudrex said the sell-off followed US producer prices rising 6.3% year-on-year, above the expected 5.3%, adding to inflation concerns following the CPI data. Nearly $950 million in leveraged positions were liquidated, while spot Bitcoin ETFs saw over $261 million in outflows.
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The global crypto market capitalisation went up 1.69% to $2.76 trillion, according to the data on Coinmarket cap.
Minal Thukral, Executive VP-Growth & Crypto Business Head at CoinDCX said After a significant fall, Bitcoin prices have managed to reclaim levels above $82,000, pushing ETH to $2,438. The broader crypto market has also recovered to some extent.
Over the last week, Bitcoin was down 0.62% and Ethereum was down 2.14%. Among the major altcoins, BNB, XRP, Solana, Dogecoin, Hyperliquid and Cardano corrected upto 5.13% whereas Tron was up 0.95%.
Riya Sehgal, Research Analyst, Delta Exchange said Crypto markets came under renewed pressure after a much hotter-than-expected U.S. PPI print reinforced concerns around sticky inflation and a higher-for-longer rate environment. Bitcoin briefly tested the $80,000 region, while Ethereum and the broader altcoin market saw relatively steeper losses as leveraged long positions were flushed out.
The next major catalyst is Fed Chair Kevin Warsh’s commentary. A more hawkish tone could revive dollar strength and pressure crypto again, while a softer stance could allow the current relief bounce to extend, Sehgal further said.
Market perspective
Nischal Shetty, Founder, WazirX: Bitcoin trades near $82,108, consolidating between longer-term support and short-term resistance. The 81,800-82,000 range remains important, followed by $81,200.
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Vikram Subburaj, CEO, Giottus: Bitcoin remains under pressure after hotter-than-expected US inflation revived concerns about further Federal Reserve tightening. Investors should avoid chasing rebounds during macro-driven volatility. Use staggered entries, keep position sizes measured and watch ETF flows and Fed signals before committing more capital.
Avinash Shekhar, Co-Founder & CEO, Pi42: Bitcoin is demonstrating an important degree of resilience. Despite US producer inflation surging to 6.3% year-on-year and expectations of a December rate hike rising, buyers stepped in when BTC briefly fell below $80,000, pushing it back above $82,000.