On the evening of November 14th, Bitcoin experienced a sudden price correction of $1,800, dropping from $36,600 to $34,800 after the release of the U.S. Consumer Price Index (CPI) data for October 2023. The CPI data showed that inflation remained relatively stable around 3%, which is seen as positive news for the crypto market.
Specifically, the CPI reached 3.2%, a significant decrease from the previous reading of 3.7% and lower than expectations. Much of this decrease can be attributed to recent fluctuations in energy prices. Meanwhile, the Core CPI, which excludes energy and food prices, came in at 0.2%, slightly lower than the 0.3% forecast.
After the price drop, Bitcoin has since recovered to around $35,400. Prior to this correction, the world’s largest cryptocurrency had been on a strong uptrend since late October, driven in part by the prospect of Bitcoin ETFs from major Wall Street players. Bitcoin even reached a new high for 2023 on November 9th at $37,972, the highest price level since May 2022, before the Luna-UST crash occurred.
As a result of Bitcoin’s correction and macroeconomic news, the entire cryptocurrency market also experienced some adjustments. However, altcoins showed quicker recovery compared to Bitcoin, and Bitcoin dominance remained relatively stable. Only a few altcoins continued to make significant gains in the market.
Data from Coinglass revealed that in the past 12 hours, over $260 million worth of derivative contracts were liquidated, with BTC and ETH accounting for the majority. Among these liquidations, approximately 89.62% were long positions.
Prior to Bitcoin’s correction, data analyst and crypto researcher James Van Straten predicted that BTC could see a deeper correction, considering it had already risen by 120% since the beginning of the year. He emphasized that market corrections are a normal part of any financial cycle and contribute to the overall health of the market.
Sharing a similar view, Filbfilb, co-founder of DecenTrader, also suggested that Bitcoin might experience a significant downturn before the halving event in April 2024.