Bitcoin Slides Below $78k as Market Liquidations Top $264M

Bitcoin dipped below the $78,000 mark on Tuesday. After trading above $79,000 over the weekend, the leading cryptocurrency faced selling pressure that pushed it to a daily low of $77,603. It has since recovered slightly to hover near $78,600.

This cooling period led to a massive shakeout in the derivatives market. Data shows that crypto liquidations reached $264 million across the board. Most of these losses hit traders who were betting on further price increases, forcing them to close their positions as the market moved against them.

Investors are now holding their breath for the latest Consumer Price Index report. This data often influences how the Federal Reserve handles interest rates, which directly impacts risk assets like crypto. Markets remain cautious as participants wait to see if the recent momentum can return or if more volatility is ahead.