• Bitcoin down 3.5% as perpetual funding rate turns negative; $180M in liquidations in 4 hours
• Inflation woes continue for UK; BOE faces tough decisions
• Staked Ethereum deposits exceed ETH withdrawals in latest 24-hour period
Bitcoin Price Plummets
Bitcoin has experienced a sharp decline, with prices falling by 3.5% and over $180 million worth of liquidations happening within four hours. This comes as the perpetual funding rate turned negative, indicating that traders are more inclined to short the cryptocurrency than to buy it.
U.K.’s Inflation Woes
The U.K.’s inflation woes have been increasing, pushing policymakers into a difficult position. The Consumer Price Index (CPI) inflation was 10.1% in March – 0.3% lower than the previous month – marking the seventh consecutive month that inflation has remained above 10%. Core CPI also rose by 0.9%, while food price inflation rose to its highest level in 45 years. Consequently, money markets are now pricing a 5% terminal rate for the Bank of England (BOE), along with a 91% probability of a 25bps interest rate hike at their next meeting.
Ethereum Network Upgrade
Ethereum recently underwent an upgrade dubbed „Shanghai“ which had significant consequences on-chain metrics such as transaction fees and network speed among others. CryptoSlate’s latest market report dives deep into these metrics before and after the upgrade to analyze whether it could be inconsequential or mark a turning point for the Ethereum network.
Bitcoin Whales Accumulation
Since January, Bitcoin whales have been entering deep accumulation phases, with spot driven rallies leading to minimal amounts of liquidations and prices going back over $30,000 again this week..
It appears that both Bitcoin and Ethereum are experiencing turbulent times right now due to various economic factors – from macroeconomic conditions like inflation to technological upgrades like Shanghai – making it an interesting period ahead for both cryptocurrencies as well as other digital assets in general.