United States Today – The United States announced that the Consumer Price Index (CPI) in December exceeded expectations, rising by a seasonally adjusted 0.4% month-on-month, above expectations of 0.3%. The annual CPI rate rose to 2.9%, the highest level since July 2024 and the third consecutive month of increase.
Both traditional and crypto markets accepted this news positively. And what an amazing move this was, as the price literally skyrocketed by over 2% within minutes.
Other popular cryptocurrencies showed even crazier moves, rising 3.5% in one minute. We are talking about billions of dollars of assets, but such sudden price fluctuations are similar to earthquakes because they are worth billions of dollars, not millions.
For a certain group of investors (sellers, also known as bears), such was the situation.
Bears crushed: what next?
As revealed thanks to data from CoinGlass, the amount of short positions liquidated since the CPI announcement totaled $87.23 million, which is three times the amount of longs. In total, the liquidation of short positions amounted to a whopping $250 million, or $250 million, in just 24 hours.
What is that 63%? Shorts, most of which were liquidated after CPI.
Bitcoin and Bitcoin have traditionally been at the top of the list for bear eradication, and this time XRP also took the top spot. As the third largest cryptocurrency, XRP soared to $2.90, liquidating over $14 million in short sales alone. To put that in perspective, Bitcoin earned $39 million and Ethereum earned $28 million.
It remains to be seen where the market goes from here. All of January’s major news happened, at least on the monetary policy front. Within the next five days, current SEC Chairman Gary Gensler is expected to resign and a new US administration will take over.
These developments could introduce new dynamics in cryptocurrencies such as Bitcoin, Ethereum, and XRP, leaving investors speculating as to whether bullish or bearish trends will prevail in the coming weeks. Become.
This article was originally published on U.Today
