The price of the flagship cryptocurrency Bitcoin ($BTC) has increased significantly in the last 24 hours to surpass the $26,000 mark in a move that saw the cryptocurrency sector far outperform other risky assets, including equity markets.
Bitcoin received help today from the Bureau of Labor Statistics, a unit of the United States Department of Labor. According to a Press release which issued at 12:30 p.m. UTC on March 14, โthe Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in February on a seasonally adjusted basis, after rising 0. .5 percent in Januaryโ.
Today's CPI announcement makes it easier for the Federal Reserve to change course by starting to lower interest rates, which is what it needs to do to help many US banks that could fail if they continue to focus on fighting inflation by raising interest rates. .
The rapid rise of the cryptocurrency market has led to liquidations of over $300 million in just 24 hours, with several other major digital assets also making double-digit gains in a short period of time.
Most of the liquidations occurred because short sellers were unable to hedge their positions on multiple cryptocurrency trading platforms, including Binance, OKX, Bybt, Huobi, and BitMEX. Most of the liquidations occurred on the major cryptocurrency exchange Binance.
The cryptocurrency market rally came after a panic caused by a stablecoin crisis, which sent the value of the second-largest stablecoin, USDC, plunging to $0.87 after it was revealed to be $3,300. millions of its reserves were held at the now-defunct Silicon Valley Bank.
Cryptocurrency prices rose and the USDC restored its peg after the Federal Deposit Insurance Corporation (FDIC) stepped in and revealed that depositors would recover. The crisis spawned several opportunities in the space, with the pseudonymous on-chain research team "Lookonchain" commenting on the highly profitable trading behavior from a โvery smartโ whale that controls 15 ETH addresses, who made $4.14 million trading ETH.
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