Bitcoin price fell by $3,000 after the release of US inflation data

Bitcoin price (BTC) fell $3,000 after US inflation data was released around 15:30 MSK. Throughout the day, the bitcoin rate rose from $81,000 to $83,300, showing a small rise immediately after the release of macro data. At the opening of the American trading session, the price began to decline. By 18:00 MSK on March 12, bitcoin is trading around $81,000.

In February, inflation in the US slowed more than expected, allowing the Federal Reserve System (FRS) to return to its plan to lower the key rate, according to CoinDesk. The FRS's target rate is 2%, and its rise raised doubts about the possibility of easing monetary policy. On an annual basis, the Consumer Price Index (CPI) in the States increased by 2.8% compared to the forecast of 2.9% and the January figure of 3.0%.

The price of Ethereum (ETH) for the day dropped by 3.3%. The leading altcoin is trading around $1.84 thousand. In relation to bitcoin, the ETH rate hit a minimum since May 2020, dropping to 0.0226 on March 12.

The total capitalization of the cryptocurrency market fell by 0.3% to $2.63 trillion in the last 24 hours, according to Coinmarketcap. Among the top 10 cryptocurrencies by market capitalization, Dogecoin (DOGE) rose by 4% more than others. Tron (TRX) declined by 1.4%. XRP (XRP) and Solana (SOL) increased by approximately 1-2%.

Among the top 100 cryptocurrencies by market capitalization in the past 24 hours, the token Pi (PI) showed the highest rise, it increased by 20%. The biggest drop was for the coin Aptos (APT) — 5.3%.

Cryptocurrency exchanges have liquidated the positions of 108,000 traders in the last 24 hours, totaling $385 million, according to Coinglass. The biggest losses were suffered by those who bet against cryptocurrencies. $156 million was attributed to long positions, approximately $229 million to short positions.

Net outflow of funds from spot exchange-traded funds (ETF) to Bitcoin in the U.S. continued. As of March 11, it amounted to $371 million, since the beginning of February - $5.1 billion according to SoSoValue data.

The fear and greed index in the crypto market rose from 24 to 34 out of 100 points. The indicator moved from the 'extreme fear' zone to the 'fear' zone. This indicates that investors' concerns have decreased, but they still tend to sell cryptocurrencies.

According to Glassnode, the decline in the bitcoin price below $95k at the end of February led to a situation where short-term investors holding bitcoin for one week to three months found themselves in a losing position. Macroeconomic uncertainty scared buyers, reducing new inflows and possibly increasing the likelihood of further selling pressure and a prolonged correction, analysts believe.