Crypto Market Plunges After U.S. Inflation Surprise Triggers $456M in Liquidations

A sharp sell-off hit the cryptocurrency market—over $456 million in positions were liquidated within an hour—following the release of July's U.S. Producer Price Index (PPI), which surged 0.9% vs. expectations of 0.2%, marking its biggest monthly increase since early 2022. The data triggered concern that the Fed may delay interest rate cuts, weighing heavy on risk assets.

Significant Price Dips in BTC and ETH

Amid the liquidation wave, Bitcoin slipped about 3.1% to $114,892, and Ethereum fell approximately 6.1% to $3,620—both leading the market decline and amplifying losses across altcoins.

Long Positions Suffer Major Losses

More than $440 million of those liquidations were long positions, as leveraged bets were forcibly closed in a cascade of stop-loss triggers. The rapid unwind intensified downward price pressure across major digital assets.