Bitcoin’s Post-CPI Whipsaw Triggers $500M+ in Liquidations

◼ What happened

Bitcoin surged after softer-than-expected U.S. CPI data, but the rally reversed sharply within hours, triggering heavy liquidations across the crypto market.

◼ Key numbers

▪ Total crypto liquidations: $575M (24h)

▪ Long liquidations: $368M

▪ Bitcoin liquidations: $202M

▪ BTC long liquidations: $119M

◼ What drove the move

▪ Initial optimism from CPI: headline 2.7%, core 2.6% (below forecasts)

▪ Profit-taking by derivatives traders, not spot sellers

▪ Elevated leverage amplified volatility

◼ Price action

▪ BTC briefly approached $90,000

▪ Strong demand seen between $81K–$85K

▪ BTC trading around $88,100, up ~1% on the day

◼ Macro pressure

▪ Bank of Japan raised rates for the first time in 30 years

▪ Puts pressure on the yen carry trade, a major source of global liquidity

▪ Risk assets, including crypto, may face tighter conditions

◼ Market sentiment

▪ Leverage remains elevated across derivatives

▪ December already saw four days with liquidations above $500M

▪ Holiday liquidity thinning could increase volatility

◼ Bottom line

Bitcoin remains range-bound amid macro uncertainty. With high leverage and shrinking liquidity, sharp whipsaws and forced liquidations are likely to continue.