The U.S. Producer Price Index (PPI) has plunged investors into deep confusion, as the July 2025 data was much more positive than expected, causing the cryptocurrency market to crash. The U.S. PPI has increased by 3.3% year-on-year, well above economists' forecasts of 3% and the June data.
Fear took hold of cryptocurrency investors, impacting the market overall, as the PPI rose by 0.9%, its highest level in over two years (since June 2022). Furthermore, digital assets had maintained a significant upward trend until now, so sellers took the opportunity to secure profits before fear increased over the possibility of rate cuts in September.
This is significant, as U.S. internet users have been waiting for rate cuts. Even Donald Trump has pressured Jerome Powell to do so. While the release of the July CPI data generated hope, the results could vary depending on the PPI.
Moments after the release of the PPI data, investor confidence surged, leading to a massive sell-off and the liquidation of long positions. CoinGlass data reveals that $1,040 million was liquidated in 24 hours, affecting 218,017 traders. Of this amount, $565 million was liquidated in just one hour, and $538 million came solely from long positions in cryptocurrencies.
The largest liquidation in one hour occurred in Ethereum, with a liquidation of $110.93 million ($102.33 million in long positions and $8.61 million in short positions). Bitcoin follows with a liquidation of $103.33 million ($100.34 million in long positions and $2.99 million in short positions), followed by XRP and other cryptocurrencies.
Many experts have already indicated the possibility of a major correction. This is due to macro events having a significant impact on the cryptocurrency market and its performance.
