Bitcoin recovers to $95,000 on US CPI slowdown... 92% of short positions liquidated

Source: BlockMedia Original Title: [Coin Market] Bitcoin recovers to $95,000 amid US inflation slowdown… 92% of short positions liquidated Original Link: Bitcoin showed strength on the 14th, touching the $95,000 mark during trading. This is attributed to improved investor sentiment driven by expectations of friendly regulations for digital assets and the stable release of the US Consumer Price Index.

As of 8:22 AM today, on South Korea’s digital asset exchange Upbit, Bitcoin was traded at 140.02 million KRW, up 4.02% from 9:00 AM the previous day. On two global exchanges, it recorded a 4.79% increase to $95,528. At the same time, Ethereum rose 7.65% to $3,328, and XRP(XRP) increased 6.01% to $2.18.

According to CoinGlass, approximately $291.84 million(about 431.5 billion KRW) worth of positions in Bitcoin were liquidated in the past 24 hours. Of these, about 92.4% were short(sell) positions. In the entire digital asset market, liquidations totaled $671.95 million(about 99.35 billion KRW).

The US December Consumer Price Index(CPI) released overnight was favorable to the digital asset market. The US Bureau of Labor Statistics(BLS) announced on the 13th(local time) that the core CPI for December, excluding food and energy, increased by 0.2% month-over-month and 2.6% year-over-year. These figures were below market expectations(each 0.3% and 2.7%), marking the lowest annual level since 2021.

The overall CPI rose 0.3% month-over-month and 2.7% year-over-year, aligning with market forecasts. While stable inflation data eased some concerns, the New York stock market closed lower without any significant rebound.

On the 13th, the Dow Jones Industrial Average(DJIA) closed down 398.21 points(0.80%) at 49,191.99. The S&P 500(S&P) 500 index fell 13.53 points(0.19%) to 6,963.74, and the Nasdaq Composite(Nasdaq) declined 24.03 points(0.10%) to 23,709.87.

The market believes that this inflation data alone makes it unlikely for the Federal Reserve(Fed) to cut interest rates early. The Fed is expected to hold rates steady at the upcoming Federal Open Market Committee(FOMC) meeting at the end of this month, with a possible rate hike pause until mid-year.

Political uncertainty also remains a burden on the financial markets. The US president has expressed intentions to push forward with the nomination of the next Fed chair within the next few weeks, despite ongoing controversy surrounding the current chair, and has publicly criticized the current leadership.

Additionally, the US president’s demand to cap credit card interest rates at 10% annually for the next year has led to a broad decline in financial and credit stocks. Some analysts suggest that while this move burdens traditional financial sectors, it could increase interest in digital assets as alternative financial instruments.

Meanwhile, the Fear & Greed Index(Fear & Greed), which reflects investor sentiment in the digital asset market, recorded a reading of 26 today, slightly down from 27 the previous day. The index indicates that closer to 0 signifies extreme fear, while closer to 100 indicates extreme greed.