Bitcoin News Today: Global Crypto Market Dumps 2% as U.S. PPI Surpasses 3.7% Sparking $1.1B Liquidations

The global crypto market experienced a sharp correction following the release of the U.S. Producer Price Index (PPI) data on August 14, which indicated rising inflationary pressures. The PPI for the month of July rose 0.9% month-over-month, with core PPI hitting 3.7% annually, far above expectations of 2.9% [1]. This data triggered widespread selling in both traditional and digital asset markets, with crypto liquidations exceeding $1.1 billion in a 24-hour period [1].

Major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) were among the hardest-hit assets. BTC dropped more than 2% in a single day, falling from a peak of $124,457 to a 24-hour low of $117,802 [1]. Ethereum also lost momentum, failing to sustain its upward trend toward a new all-time high. Altcoins saw massive profit-taking, with some falling more than 10% within hours [1].

According to data from Coinglass, over 214,000 traders were liquidated in the last 24 hours, with the largest single liquidation order amounting to $6.25 million in an ETH-USDC swap on OKX [1]. In one hour alone, more than $450 million in long positions were liquidated, signaling heightened volatility and risk in leveraged trading [1].

The market is now bracing for further downward pressure, with $6.5 billion in crypto options set to expire on Friday. This expiry event could exacerbate the current bearish sentiment, especially if BTC options on Deribit trigger additional volatility [1].

The PPI data has also cast doubt on the likelihood of a Fed rate cut in September, despite earlier expectations of a 92% probability of a 25 basis points reduction. Traders are now pricing in the possibility of only one or even no rate cuts for the remainder of the year [1]. The U.S. dollar index (DXY) rose 0.30% to 98.25, while the 10-year Treasury yield climbed to 4.265%, both of which are traditionally bearish for crypto assets [1].

Economist Peter Schiff noted that the 0.9% MoM increase in PPI was the largest since June 2022, signaling a return of inflationary pressures that could persist in the near term [1].

Source: [1] Stock Market, Crypto Dump: Over $1B in BTC, ETH, XRP, SOL, Altcoins Liquidated on Hot PPI (https://coinmarketcap.com/community/articles/689e0923a4b0812391e0242e/)