Bitcoin: Unexpected 17% Surge Wipes Out Weekend Losses
On Tuesday, the price of Bitcoin (BTC) surged over 17% in the past 24 hours, exceeding $26,000 and reaching a 9-month high.
The leap occurred simultaneously with the most recent consumer price index report, indicating a 0.4% surge in February compared to January, consistent with the forecast of Dow Jones-polled economists. Core CPI, which eliminates unpredictable food and energy prices, exhibited a monthly upswing slightly exceeding the expectations of economists and a year-over-year shift that was on par with them.
On Monday, almost $180 million in Bitcoin shorts were liquidated, marking the most extensive amount since Jan. 20.
This led to a loss for the majority of Bitcoin futures traders, with losses mainly spread across several crypto exchanges.
On Monday, Bitcoin prices increased as US bank stocks fell steeply, causing fears of a similar bank run on regional outlets following last week’s Silicon Valley Bank collapse.
This conversion may have also contributed to the price rise. Furthermore, data indicates that the price increase was led by investors purchasing Bitcoin directly, rather than investing in futures.
At the time of writing BTC is trading at $25,900 with a $54 billion 24-hour trading volume. Ethereum also surged around 10% and is currently priced at $1,750 with a $16 billion trading volume for the past 24 hours.