Image default

Bitcoin Dips Below $27K, Reversing Post-CPI Rally

share on Facebookshare on LinkedInshare on TwitterCDCROP: Red arrows pointing down falling drop (Getty Images)

(Getty Images)

share on Facebookshare on LinkedInshare on Twitter

Bitcoin (BTC) dipped below $27,000 Wednesday midday, reversing a morning jump following the release of mildly encouraging U.S. inflation data.

The BTC/USD trading pair on Coinbase traded as low as $26,800 before regaining some ground, according to TradingView data. The largest cryptocurrency by market capitalization was recently trading at around $27,400, down more than 4% in the past hour and 1.8% in the past 24 hours.

CoinDesk - Unknown


Coinglass data showed that traders who bet on a price shift liquidated over $47 million in BTC long positions over roughly the past hour versus just over $5 million in BTC short position liquidations. These types of long squeezes tend to push prices lower.

Riyad Carey, research analyst at crypto data firm Kaiko, pointed out that there are still concerns about low liquidity in markets, with BTC’s aggregated 2% market depth – a metric for assessing liquidity conditions – hasn’t recovered since crypto exchange FTX’s collapse last November.

It’s “a symptom of illiquidity,” he told CoinDesk.

CoinDesk - Unknown


BTC’s price initially jumped after Wednesday morning’s Consumer Price Index (CPI) report, released by the Bureau of Labor Statistics, showed that annual inflation slowed to 4.9% in April from 5% in March and less than the forecast 5%. The CPI rose 0.4% on a monthly basis, aligning with expectations and higher than 0.1% in March.

Ether (ETH), the second-largest cryptocurrency by market capitalization, followed a similar pattern, dropping by 1% in the past 24 hours to change hands at around $1,860. The CoinDesk Market Index (CMI), which measures the overall crypto market performance, was down 1% over the past 24 hours.

Equities were mixed on Wednesday midday (ET), with the S&P 500 trading down 0.1% but the tech-heavy Nasdaq edging 0.5% higher. The Dow Jones Industrial Average (DJIA) was down 0.6% for the day.

“The sell-off coincided with a drop in stocks so it could be partially correlation-led,” Lucas Outumuro, head of research at blockchain analytics firm IntoTheBlock, told CoinDesk.

UPDATE (May 10, 2023, 18:37 UTC): Adds Carey comments.

Edited by James Rubin.


Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Trending1Bitcoin's price (CoinDesk Indices)MarketsBitcoin Prices Slip to 2-Month Lows As CoinDesk’s Bitcoin Trend Indicator Turns Neutral From BullishMay 12, 20232Hive Blockchain's ethereum mining facility in Boden, Sweden. (Sandali Handagama/CoinDesk)FinanceCrypto Miner Hive Blockchain Targets 6 EH/s of Computing Power Funded by Up to $100M Share SaleMay 12, 20233Milady 8835 last sold for 0.35 ETH (about $1,000) on OpenSea. (Art by Remilia, modified by CoinDesk.)MarketsDogecoin-Like Spike in Milady NFTs After Elon Musk’s Tweet, But Will It Last?May 12, 20234Crypto traders are waiting to see the effects of the Federal Reserve Meeting at 2 p.m. ET. (Gerhard Reus/Unsplash)MarketsFirst Mover Asia: Bitcoin Regains $27K, but Investors Search for a CatalystMay 12, 2023


Related posts

Pepecoin Overtakes Dogecoin, Shiba Inu Trading Volumes as Early Buyers Take Profits

Blake Goodwin

First Mover Asia: Missing From the Debate About Binance’s Proof of Reserves and Auditor, One Metric Shows Another Exchange Could Be in Trouble

Blake Goodwin

Gala Games to Airdrop Version 2 Tokens in May

Blake Goodwin

Leave a Comment