Bitcoin’s Post-CPI Whipsaw Liquidates Over $500M Again

Group 1: Bitcoin Market Dynamics - Bitcoin experienced significant volatility following a soft inflation report, leading to over $500 million in liquidations within the crypto market [1] - The recent liquidation data indicated that $575 million were liquidated in the past 24 hours, with Bitcoin accounting for $202 million of that total [2] - Despite the sell-off, Bitcoin has shown resilience, trading around $88,100 and maintaining demand in the $85,000 to $81,000 range [3] Group 2: Economic Influences - The Bank of Japan's decision to raise interest rates by a quarter point marks the end of a 30-year low rate regime, potentially impacting crypto and other risk assets [4] - The unwinding of the carry trade following the rate hike is expected to reduce liquidity that has supported risk assets for years [4] - Elevated leverage in the crypto ecosystem has been noted, with significant liquidations occurring during December [5] Group 3: Market Sentiment and Predictions - Traders remain optimistic about Bitcoin's future, with a 61% chance predicted for its price to reach $100,000 rather than $69,000 [3] - As the holiday season approaches, increased volatility is anticipated due to shrinking liquidity and portfolio rebalancing among investors [6] - Defensive positioning among futures and options traders is expected to amplify market conditions [6]