Bitcoin has unexpectedly dropped below $27,000 after a rumor about the US government moving Bitcoins out of wallets.
According to data from Coinglass, after Bitcoin suddenly plunged below $27,000, nearly $100 million has been liquidated in the past hour.
Coinglass data shows that 90% of these liquidations come from long positions.
The sudden drop in Bitcoin originated after rumors were spread on Twitter about a wallet address believed to be by the US government that was moving large amounts of its Bitcoins.
However, shortly after Onchain analysis platform Arkham and Onchain analyst ZachXBT both confirmed that the US government rumor of selling Bitcoin was untrue.
A few hours earlier, after the US April inflation data released lower than expected, Bitcoin bounced back above the $28,000 mark.
At the time of writing, Bitcoin is trading at $27480, down nearly 1% over the past 24 hours according to data from Binance .