US October CPI higher than expected, leading to the liquidation of $178 million in long positions in the cryptocurrency market.

The cryptocurrency market saw $178 million in long positions liquidated in the past hour due to higher-than-expected US October CPI data. AI Interpretation: The unexpected rebound in inflation data shattered market illusions about a short-term shift in monetary policy. This result reinforced the Federal Reserve's necessity to maintain high interest rates to combat persistent inflation. The rising cost of funding expectations quickly triggered a sell-off in high-risk assets. The market is repricing the risks of tightening liquidity, and the cryptocurrency market will continue to face significant deleveraging pressure in the short term.