#MarketTurbulence A sharp drop in Bitcoin below the $118,000 mark on Thursday shook the cryptocurrency market, as inflation data frightened investors and triggered over $1 billion in leveraged asset liquidations.

The sharp decline came after a recent surge in Bitcoin to multi-month highs, raising questions about whether the bullish trend could maintain its momentum.

The sudden market turbulence reflects a broader risk-off sentiment, as both traditional and digital asset traders react to fresh inflation data in the U.S. While Bitcoin had been trading steadily above a key resistance level earlier in the week, the sell-off highlights how sensitive the market remains to macroeconomic changes.

The price of Bitcoin plummeted during early trading on Thursday, dropping from highs of nearly $122,000 to lows of less than $118,000 within a few hours. This event was one of the sharpest intraday reversals in recent weeks, with Bitcoin losing over $4,000 in value.