Bitcoin, Ether Volatility Shocks Bears and Bulls Alike; Bank Crisis Could be Cause
• Bitcoin and Ether reached all-time highs as investors sought alternative assets amid a banking clampdown in the U.S.
• Crypto futures experienced $300 million in liquidations over the past 24 hours, signaling the local top or bottom of a steep price move.
• U.S. consumer price index (CPI) data pointed to slowing inflation in the coming months, causing Bitcoin to struggle to establish a foothold above $25,000.
Bitcoin and Ether Reach All-Time Highs
Bitcoin and ether prices surged to all-time highs on Tuesday as investors looked for alternative assets amid a banking clampdown in the U.S., with bitcoin briefly inched above $26,000 and ether briefly hovering around $1,770.
$300 Million Liquidated Over 24 Hours
Crypto futures experienced large liquidation orders over the past 24 hours totaling up to $300 million, signaling the local top or bottom of a steep price move which may allow traders to position themselves accordingly.
U.S. Consumer Price Index (CPI)
U.S consumer price index (CPI) data also suggested that inflation was slowing down in the coming months, making it difficult for bitcoin to establish a foothold above $25,000 on its weekly chart which had capped gains last month as well as in August 2022.
Market Volatility Stunting Bulls and Bears Alike
The higher-than-usual market volatility affected bulls and bears alike with some market observers saying that bitcoin’s recent price movements were largely driven by investors looking for alternative assets to park their funds during this time of financial uncertainty caused by regulatory clampdowns on crypto friendly banks in the United States..
This week has seen an unprecedented surge of activity within both cryptocurrency markets as investors sought out alternative safe havens while inflation slows down across the board due to economic uncertainty stemming from bank regulation and other factors such as US CPI data pointing toward slower growth in coming months