Stock Market, Crypto Dump: Over $1B in BTC, ETH, XRP, SOL, Altcoins Liquidated on Hot PPI

Key Insights:

• Crypto market crash as US PPI inflation jumped 0.9% in July, raising headline core PPI inflation to 3.7%.
• The crypto market saw over $1.10 billion in liquidations in the last 24 hours, with ETH, BTC, XRP, SOL, DOGE, ADA, SUI, ENA, and LINK most impacted.
• $6.5 billion in crypto options expiry on Friday may put further selling pressure in the market.

The crypto market crash was witnessed in the US hours on Thursday, with the global crypto market cap tanking more than 3% from $4.19 trillion to $4.02 trillion in a single day. This resulted in investors losing more than $170 billion as PPI inflation in the United States increased 0.9% for July.

Bitcoin price (BTC) pared earlier gains from $124K to $118K, with options expiry could take the price further lower on Friday. Meanwhile, Ethereum (ETH) price failed to hold upside momentum to hit a new all-time high.

Altcoins, including XRP, BNB, Solana (SOL), TRON (TRX), and Cardano (ADA), also saw massive profit booking, likely eroding the altcoin season sentiment for the short term. Meme coins Dogecoin (DOGE) and Shiba Inu (SHIB) tumbled more than 10%.

Crypto Market Crash Saw Over $1 Billion in Liquidations

Over $1.10 billion in crypto liquidations were recorded in the last 24 hours, according to Coinglass data. Over 214K traders liquidated in the last 24 hours.

The largest single liquidation order of ETH-USDC swap worth $6.25 million happened on crypto exchange OKX.

More than $450 million in long positions get liquidated in an hour. Also, $790 million in longs and $235 million in shorts were liquidated over the past 24 hours.

ETH, BTC, XRP, SOL, DOGE, ADA, SUI, ENA, and LINK were the most liquidated crypto assets in the last 4 hours.

Hotter Core PPI of 3.7% Spoils Crypto Market Mood

The U.S. Bureau of Labor Statistics released the Producer Price Index (PPI) inflation data for July on August 14. Hotter PPI data after a cooling CPI data sparked doubts on the Fed rate cut in September, with all eyes on the U.S. central bank’s preferred inflation gauge US PCE data now.

The US PPI and Core PPI both rose 0.9% month-over-month (MoM), significantly higher than the 0.2% expected after a flat reading in June.

This took the year-over-year Core PPI to 3.7%, against 2.9% expected. Also, PPI rises to 3.3%, higher than the expected 2.5%.

Economist Peter Schiff said this was the biggest increase since June 2022, sending headline PPI to rise by 3.3%, the highest since February. He added:

At the time of writing, the CME FedWatch still showed more than 92% probability of a Fed rate cut by 25 bps in September. Moreover, the traders now expect odds of two rate cuts this year, after the latest hotter PPI data.

Bitcoin and Ethereum Price to Fall?

The US dollar index (DXY) has increased 0.30% to 98.25 after the PPI inflation impacted traders’ sentiment.

Also, the 10-year US Treasury yield climbed higher at around 4.265%, putting selling pressure on BTC price.

Bitcoin price fell more than 2% to $118,626 at the time of writing. The 24-hour low and high were $117,802 and $124,457, respectively.

The trading volume increased by 35% over the last 24 hours, indicating high interest among traders. However, $5 billion in BTC options expiring on Deribit could further impact sentiment due to higher volatility.

In contrast, Ethereum price rebounded from $4,500 to $4,650 over the last 24 hours. Also, the trading volume jumped more than 15%.