Bitcoin News Today: Crypto Market Loses $133 Billion as PPI Surge and Treasury Comments Spur Liquidations

The cryptocurrency market experienced a significant correction on August 14, 2025, as total market capitalization declined by $133 billion, bringing it down to $3.98 trillion. This sharp decline came amid rising inflation concerns and shifting policy signals from U.S. government officials. Over the course of 24 hours, more than $1 billion in crypto positions were liquidated, with long positions accounting for the majority of the losses [1].

Bitcoin, the largest cryptocurrency by market capitalization, fell 3.59% to $119,098 following a brief surge to an all-time high of $123,700 just a day earlier. Ethereum also posted a significant drop, falling 2.4% to around $4,643. Dogecoin was the hardest hit among the top ten cryptocurrencies, with a 10.3% price drop [2]. The market downturn was particularly pronounced in leveraged positions, with Ethereum experiencing the highest liquidations at $351.8 million—$272.47 million from long positions and $79.36 million from short positions [3].

The primary catalyst for the selloff was the release of the July Producer Price Index (PPI) report, which showed a 0.9% increase in the index, far above the expected 0.2% rise. On an annual basis, the PPI climbed 3.3%, the largest 12-month increase since February 2025. Analyst Michaël van de Poppe identified this data as a key trigger, noting that it caused “liquidations after liquidations on long positions” [4]. The unexpected inflationary pressures raised concerns about potential tightening of monetary policy and higher interest rates, both of which are historically bearish for risk assets like cryptocurrencies [3].

Compounding the market pressure, U.S. Treasury Secretary Scott Bessent announced that the government would not purchase Bitcoin for its Strategic Bitcoin Reserve. Instead, the reserve will only be built from confiscated assets currently valued between $15 to $20 billion. The Treasury also confirmed it would halt the sale of its existing Bitcoin holdings. This statement contradicted some market expectations and further contributed to the negative sentiment [5]. The announcement came at a sensitive time, exacerbating the already fragile market structure following the PPI report [2].

A recent Glassnode report had also highlighted the increasing leverage in the crypto market, particularly in altcoins, where open interest had reached an all-time high. This structural vulnerability meant that sudden market moves could trigger widespread liquidations and amplify price swings [4]. Analysts have noted that the growing interconnection between crypto and traditional financial markets means macroeconomic signals now play a more direct role in shaping investor behavior [3].

Despite the sharp selloff, Bitcoin remains near all-time highs, trading above $118,000. However, market participants remain cautious, with many watching for additional economic data and potential Federal Reserve policy shifts. The recent events highlight the ongoing sensitivity of the crypto market to macroeconomic conditions and underscore the importance of risk management, particularly in leveraged trading [5].

Source:

[1] Blockonomi, https://blockonomi.com/crypto-market-cap-falls-by-133-billion-as-inflation-concerns-rise/

[2] CoinCentral, https://coincentral.com/bitcoin-liquidations-hit-1-billion-following-ppi-report-and-us-treasury-announcement/

[3] BeInCrypto, https://beincrypto.com/crypto-liquidation-ppi-report/

[4] Traders, https://tradersunion.com/news/cryptocurrency-news/show/437484-crypto-market-update-ppi/

[5] Blockonomi, https://blockonomi.com/solana-sol-price-token-breaks-200-mark-for-first-time-since-february/