According to data from CryptoSlate, the top crypto is trading around $116,894, representing a drop of over 5% in just 24 hours.
Long traders, who expected Bitcoin’s price to continue rising, faced the brunt of the losses, with $383 million worth of liquidations. Conversely, short traders lost $78.54 million during the same period.
This widespread liquidation across the market reflects the volatility and risk that traders face in the crypto space, especially during periods of significant price corrections
Market analysts also attribute Bitcoin’s pullback to broader economic conditions in the United States.
The analysts told CryptoSlate that:
“With core inflation expected around 3.0–3.1% YoY, a hotter-than-expected print (e.g., core >3.2%) could delay Fed easing, dampen market sentiment, and raise borrowing costs. This would strengthen the dollar and hurt demand for non-yielding assets like Bitcoin, potentially extending the pullback by another 5–10%.”
However, a softer CPI reading could flip the market narrative, especially if headline inflation drops below 2.5% and core trends toward 2.9%. They stated:
“In May, we saw this play out: a cooler CPI print led to a sharp rally across both equities and crypto. A similar outcome today could push Bitcoin back toward $120K+ again especially if ETF inflows remain strong as they have in the past 2 weeks.”
