Bitcoin’s price increased by over $1,000 in a matter of hours, sending the market into green territory. The price rally coincided with the release of the U.S. consumer price index report, which showed a 6.2% increase in inflation compared to last year.
Many investors see bitcoin as a hedge against inflation, as it has a limited supply and cannot be devalued by excessive money printing. However, the crypto market is also highly volatile and risky, as evidenced by the daily liquidations of over $110 million across various exchanges. Liquidations occur when traders’ positions are forcibly closed due to insufficient margin or significant losses. Traders should be careful and use risk management strategies to avoid or mitigate the possibility of liquidation.
