The cryptocurrency market is showing signs of strain after the latest U.S. Producer Price Index (PPI) report came in well above expectations, fueling concerns over persistent inflationary pressures.
The PPI for final demand surged 0.9% in July from the prior month — sharply higher than the 0.2% forecast — marking the steepest monthly increase since early 2022.
The hotter-than-expected data raised market fears that the Federal Reserve could keep interest rates elevated for longer, pressuring risk assets, including cryptocurrencies.
Market Snapshot
Global crypto market capitalization fell to $4.03 trillion, down 1.83% in the past 24 hours, while trading volumes surged 11.35% to $260.47 billion. Bitcoin slipped 0.67% to $119,744, though it remains 2.84% higher over the past week. Ethereum dropped 1.89% to $4,626, still up over 20% in the last seven days.
Liquidations Surge
The inflation shock triggered significant volatility, with $931.06 million in total liquidations over the past day. Long positions bore the brunt, accounting for $674.19 million of the total, compared to $256.87 million in shorts. In the past hour alone, $456.12 million was liquidated, including $439.71 million in longs.
Ethereum and Bitcoin led the liquidation heatmap, each seeing over $100 million in positions wiped out in just one hour. Solana, XRP, and Dogecoin also recorded notable liquidations.
Investor Outlook
The stronger PPI print adds uncertainty to the macroeconomic backdrop, potentially complicating the Federal Reserve’s path to rate cuts. A prolonged period of high interest rates could dampen speculative appetite in crypto markets, though some traders see dips as buying opportunities given the sector’s strong performance in recent weeks.
If inflation pressures persist, market volatility is likely to remain elevated — and with Bitcoin and Ethereum both having posted strong multi-week gains, profit-taking could intensify before the next major catalyst emerges.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/456m-liquidated-in-one-hour-as-crypto-market-pulls-back/