Crypto traders are experiencing large short liquidations triggered by news of Sam Bankman-Fried’s arrest and the latest consumer price index (CPI) data.
According to the U.S. Bureau of Labor Statistics (BLS), the latest CPI data, released today, shows signs of inflation slowing.
“The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in November on a seasonally
adjusted basis, after increasing 0.4 percent in October, the U.S. Bureau of Labor Statistics reported
today. Over the last 12 months, the all items index increased 7.1 percent before seasonal adjustment.”
CPI data measures how much the prices of consumer goods and services change. The CPI typically reflects the spending patterns of urban consumers and urban wage earners, which represent about 93% of the US population. The data does not account for consumers living outside of metropolitan areas.
Crypto markets appear to be bouncing on the release of the CPI data as well as the most recent development in the FTX fiasco – the arrest of former FTX CEO Sam Bankman-Fried in the Bahamas.
United States Attorney for the Southern District of New York, Damian Williams, made the announcement on Twitter.
“Earlier this evening, Bahamian authorities arrested Samuel Bankman-Fried at the request of the U.S. Government, based on a sealed indictment filed by the SDNY.
We expect to move to unseal the indictment in the morning and will have more to say at that time.”
According to crypto data aggregator Coinglass, over $100 million in shorts have been liquidated in the last 24 hours, making it the biggest market cleanup since November 10th.
At time of writing, the two leading cryptos by market cap, Bitcoin (BTC) and Ethereum (ETH), are both up approximately 5% in the last 24 hours, while the total market cap of all digital assets is up 3% in the past seven hours.
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Featured Image: Shutterstock/Teguh Sasongko 3/Sensvector
