Volatility Resumes as Whale Enters a Long Position

• A Bitcoin and Bitmex whale has entered a long position.
• The US CPI was officially released on Thursday 13th of October.
• The volatility of Bitcoin has increased following the CPI release.

It looks like someone initiated a long position at the market price on the Binance and Bitmex futures markets simultaneously after the CPI release, while BTC was falling. With the disclosure of a rise in crude oil inventories, it’s possible that it may have taken a long position.

In the moments following the announcement, Bitcoin (BTC) fell by almost 3%, reaching its lowest level since September 21. The most valuable cryptocurrency on the market was valued at about $18,400 as of the release. 

Due to the Federal Reserve’s efforts to control surging inflation, prices for financial assets deemed risky, such as equities and bitcoin, have fallen. This is why cryptocurrency traders pay close attention to monthly inflation numbers.

One of the most volatile days we’ve seen thus far occurs as a result of September’s CPI announcement, which comes in hotter than anticipated. The market balances between a rally that tears its face off and another leg down.

According to FactSet, the core Consumer Price Index increased at an annualized rate of 6.5% in September, up from 6.3% in August. The impact of volatile food and energy costs is removed from this “core” inflation rate; the “headline” CPI, which includes food and energy goods, is already running hot above 8%.

The Federal Reserve has been trying to restore price stability by tightening monetary policy, which has in turn put downward pressure on the prices of risky assets like stocks and cryptocurrencies. 

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A core CPI of 6.5% would be the highest in four decades, which helps to explain the alarm among Federal Reserve officials.

However, after the largest cryptocurrency plunged earlier in the day due to a hotter-than-expected U.S. inflation report, Bitcoin rose to over $19,000 on Thursday in a chaotic day of trading. BTC is trading at $19,809 at the time of writing.

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