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US Consumer Price Index Data Triggers Crypto Market Crash
The US Producer Price Index (PPI) for July rose by 0.9% compared to the previous month — the largest monthly increase since May 2022. On an annual basis, the index grew by 3.3%, significantly exceeding Wall Street’s forecast of around 2.5%.
The Core Consumer Price Index (excluding food, energy, and trade services) increased by 0.6% month-over-month and by 2.8% year-over-year — also the largest rise since early 2022.
These figures indicate strong inflationary pressure, driven primarily by rising service costs, causing the cryptocurrency market to react negatively and drop sharply. Within 24 hours, $1.04 billion in positions were liquidated, with around $538 million wiped out in less than an hour.
More than 218,000 traders were affected as Bitcoin, which had reached an all-time high earlier today, fell to $117,000, dragging altcoins down with it. Ethereum dropped by about 3%, while Dogecoin fell by more than 6%.
Among traders, the largest losses were suffered by Ethereum holders — over $177 million. Bitcoin holders lost around $113 million, while XRP and Solana holders saw losses of $44 million and $39 million respectively.
See also: "US Treasury Will Not Buy Bitcoin for Strategic Reserve"
