Bitcoin Volatility After CPI Data Triggers Over $500M in Liquidations

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Bitcoin volatility spiked after weaker-than-expected CPI data, with on-chain data showing over $500 million in crypto liquidations. The inflation rate came in at 2.7%, pushing Bitcoin near $90,000 before a sharp reversal. CoinGlass reported $57.5 million in 24-hour liquidations, with $20.2 million from Bitcoin. Derivative traders, not spot investors, led the pullback. Despite the drop, the $85,000 to $81,000 range holds as key support. Bitcoin rose 1% to $88,100. On-chain data also shows high leverage remains a risk, with four days in December seeing over $500 million in liquidations.
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