CryptoQuant analyst Darkfost said the market was hit by two negative developments at nearly the same time: a 25-basis-point rate hike from the European Central Bank and U.S. Producer Price Index data that came in above expectations. According to the figures cited, core PPI rose 4.6% year over year versus a 4.5% forecast, while headline PPI rose 5.4% against expectations of 5.1%.
Darkfost said the market reacted quickly, with the move showing up clearly in Bitcoin futures. On Binance, aggressive sell volume climbed to more than $1.4 billion within a single hour. He said that sudden wave of selling pressure in the futures market reflected investors’ concern and their preference to hedge by betting on a drop in Bitcoin’s price. During the same bout of volatility, more than $60 million in Bitcoin-related positions were liquidated in less than an hour.
PANews reported on Sept. 10 that CryptoQuant analyst Darkfost said Bitcoin selling was triggered after the market absorbed two negative developments in quick succession.
ECB hike and hotter U.S. PPI hit sentiment at the same time
According to Darkfost, the first was a 25-basis-point rate increase announced by the European Central Bank. He said it was the bank’s second rate hike this year and was aimed at addressing rising inflation pressure. At the same time, newly released U.S. Producer Price Index data also came in above expectations.
Core PPI rose 4.6% year over year, above the 4.5% forecast, while headline PPI increased 5.4%, higher than the expected 5.1%.
Bitcoin futures saw a sharp jump in selling pressure within one hour
Darkfost said those figures intensified concern about inflation and the market responded quickly. The move was especially visible in Bitcoin futures: on Binance, aggressive sell volume surged to more than $1.4 billion in just one hour.
He said the sudden selling pressure in the futures market reflected investors’ concern, with traders choosing to hedge by positioning for a decline in Bitcoin.
During the same period of volatility, more than $60 million in Bitcoin-related positions were liquidated in less than an hour.
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