0.1 percentage point. That's the gap that cost leveraged buyers $589 million yesterday.
The link between grocery prices in the US and your crypto chart isn't obvious, so let me walk you through the dominoes.
First domino. On Tuesday, the US Bureau of Labor Statistics released October inflation: +0.4% month over month. Economists had expected +0.3%. Core inflation, excluding food and energy: +0.3% instead of +0.2%.
Second. Markets conclude that the Fed could raise rates again in December. The yield on 10-year US Treasury bonds climbs back above 5%. When an investment considered risk-free pays 5%, money is less inclined to go into volatile assets.
Third. Stocks and crypto fall together. Nasdaq −1.5%. $BTC falls below $73,000, $ETH loses 5% to around $2,029.
The last domino is the most brutal: liquidations. When you buy with borrowed money, the platform forcibly closes your position if the price falls too far. $716M liquidated in 24 hours, according to Coinglass, including $589M on the buyers' side.
What strikes me is that price increases were lower than in September (+0.6%). So the message isn't “inflation is exploding,” but “it's slowing down less quickly than expected.” The market isn't reacting to the number. It's reacting to the surprise.
The level everyone's watching: $73,000, the average of the last 200 days. For Wintermute, a daily close below that would open the way toward $68,000. A scenario, not a prophecy.
Do you check the macro calendar before opening a position, or do you find out about CPI afterward, staring at a red screen?
#Bitcoin #Inflation #Fed #Macro #Crypto
The link between grocery prices in the US and your crypto chart isn't obvious, so let me walk you through the dominoes.
First domino. On Tuesday, the US Bureau of Labor Statistics released October inflation: +0.4% month over month. Economists had expected +0.3%. Core inflation, excluding food and energy: +0.3% instead of +0.2%.
Second. Markets conclude that the Fed could raise rates again in December. The yield on 10-year US Treasury bonds climbs back above 5%. When an investment considered risk-free pays 5%, money is less inclined to go into volatile assets.
Third. Stocks and crypto fall together. Nasdaq −1.5%. $BTC falls below $73,000, $ETH loses 5% to around $2,029.
The last domino is the most brutal: liquidations. When you buy with borrowed money, the platform forcibly closes your position if the price falls too far. $716M liquidated in 24 hours, according to Coinglass, including $589M on the buyers' side.
What strikes me is that price increases were lower than in September (+0.6%). So the message isn't “inflation is exploding,” but “it's slowing down less quickly than expected.” The market isn't reacting to the number. It's reacting to the surprise.
The level everyone's watching: $73,000, the average of the last 200 days. For Wintermute, a daily close below that would open the way toward $68,000. A scenario, not a prophecy.
Do you check the macro calendar before opening a position, or do you find out about CPI afterward, staring at a red screen?
#Bitcoin #Inflation #Fed #Macro #Crypto
