The Bitcoin market turned slightly bullish after Wednesday’s CPI data that came below analyst expectations at 4.9 percent. The mother coin rallied above $28k, there attracting more long crypto traders. However, the rally was not sustained as Bitcoin price briefly teased below $27k for the first time since the end of March. As a result, 99.64 percent of Bitmex long traders, accounting for $24.8 million, were liquidated in the past 24 hours.
As the crypto market turned more bearish, on-chain data shows about 6,272 Bitcoins were added on Binance in the past 24 hours. Additionally, the total Bitcoin balance on centralized exchanges significantly spiked to more than 1.9 million, thus signaling a possible dump incoming.
Analyst Highlights Possible Reasons Why Bitcoin Suddenly Dumped
According to a pseudonymous crypto analyst at CryptosRUs with more than 663k subscribers on the YouTube channel, Bitcoin dropped after the CPI data caused by FUD on the inflation report. Additionally, the analyst highlighted that the U.S. sale of Silk Road Bitcoin holding amount to more than 9k caused some fear in the market.
The rise of Milady meme coin (LADYS) pumped more than 126X in the last 24 hours is also a significant contributor to the Bitcoin dump. Moreover, more traders are likely to have jumped into the meme coin frenzy to catch some profits.
Nevertheless, the BTC market held the $27.5 k support after Tether (USDT) announced a Bitcoin reserve of about $1.5 billion. Additionally, the analyst highlighted that the Bitcoin market gained more investors’ confidence after a United States Congressman Brad Sherman admitted the government prints money out of thin air.
“Crypto bros … made over a trillion dollars out of thin air. They’ll accuse the U.S. government of making money out of thin air. Maybe we do, but we’re the U.S. government,” Sherman said during a House hearing.
Source: https://coinpedia.org/bitcoin/bitcoin-live-news-top-reasons-why-btc-price-dumped-below-28k-after-cpi-data/