Meanwhile, the wider cryptocurrency market witnessed over $800 million worth of liquidations, as the sudden plummet of the leading digital asset took investors by surprise.

Early on Thursday, Bitcoin soared to new heights, nearly reaching $74,000, marking another all-time high for the red-hot cryptocurrency. However, this bullish streak came to a halt when the U.S. Labor Department's report unveiled that inflation had not fully subsided. Consequently, Bitcoin experienced a downward spiral from which it has yet to fully recover.

On Friday morning, BTC dropped to as low as $65,848, causing an 8% dip from Thursday's peak. This unexpected decline took many traders by surprise, who had placed vast amounts of money on the assumption that Bitcoin's upward trajectory would continue. In the past 24 hours alone, over $200 million worth of Bitcoin long positions were liquidated, according to data provided by CoinGlass. Additionally, over $70 million worth of short positions on the world's top cryptocurrency were also liquidated during this period.

While Bitcoin accounted for over a third of all crypto market liquidations, several other coins also experienced the impact of this sudden price correction. Ethereum, following a similar trend, plummeted approximately 8% to $3,701 after the inflation news broke. Subsequently, more than $100 million worth of ETH long positions were liquidated, along with over $30 million worth of short positions on the token.

Solana and Dogecoin were among the other tokens heavily affected by the abrupt price dip. Solana witnessed over $40 million in liquidations, while Dogecoin saw approximately $18 million worth of liquidations. Notably, Solana deviated from the pattern, with both long and short liquidations being almost equally split, amounting to roughly $20 million each.

While the majority of cryptocurrencies experienced significant liquidations in long positions, the events of yesterday demonstrated a unique scenario with Solana. This unexpected turn of events has left many investors reevaluating their strategies and evaluating the future direction of the crypto market.

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