
$1B Crypto Liquidations Triggered by Hot PPI Inflation Shock
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Bitcoin dropped over 2% and Ethereum saw slight declines after July’s Producer Price Index (PPI) surged beyond expectations, sparking macroeconomic concerns and triggering $1 billion in crypto liquidations.
The PPI rose 0.9% MoM and 3.3% YoY—the highest annual increase since February—exceeding economist forecasts of 2.5% YoY.
Per CoinGlass, $782 million of the liquidations were long positions, with the largest single wipeout being a $6.25M ETH/USDT trade on Bybit.
Despite the inflation surprise, markets still price in a 92% chance of a September Fed rate cut, per the CME FedWatch Tool, suggesting traders see the PPI spike as an anomaly unless future data confirms persistent inflation.