The macro environment just turned hostile for risk assets. Hotter US inflation data has triggered a violent deleveraging event across the crypto markets. Bitcoin price slid to $73,700 as the sudden spike in CPI data forces traders to recalibrate expectations for Federal Reserve policy.
The fallout was immediate with $723M in liquidations wiping out leveraged positions. This selling pressure was compounded by unexpected ETF withdrawals and large scale whale selling.
Institutional players should watch the $70,000 level closely. This is no longer a retail driven rally but a macro driven volatility event. Liquidity is evaporating as the market reacts to the inflation print.