🚨 Breaking: U.S. Producer Inflation Surges – Crypto Markets Shake 🚨

📊 PPI Jumps Most in 3 Years

On August 14, 2025, it was reported that U.S. business prices rose 0.9% in July—the biggest monthly jump since mid-2022 and much higher than the 0.2% experts expected.

The spike was fueled by broad increases in both goods and services, including a 1.4% surge in food prices driven by vegetables, meat, and eggs, and a 1.1% jump in services costs led by freight, hotels, and portfolio management. Annual PPI inflation now stands at 3.3%, up from 2.4% in June.

ℹ️ Producer Price Index (PPI) vs Consumer Price Index (CPI)

The PPI shows how much prices are rising for businesses selling goods and services (wholesale level), while the CPI shows what shoppers pay (retail level). PPI often signals where CPI might head next. In July 2025, U.S. CPI rose 2.7% year-on-year, below market expectations, but still above the Federal Reserve’s 2% inflation target.

💵 Fed Rate Cut Hopes Waver

This hotter-than-expected inflation data threatens a September rate cut, with markets reassessing the Federal Reserve’s “wait-and-see” stance. Economists warn that President Trump’s sweeping tariffs will continue pushing up domestic prices in the months ahead.

📉 Crypto Hit Hard

The inflation shock rattled risk assets: Bitcoin slid nearly 2% to under $119K, Ethereum dropped 4% to ~$4,550, and altcoins saw widespread losses. More than $500M in leveraged positions—mostly longs—were liquidated within an hour, intensifying the sell-off.

🪙 What Crypto Holders Need to Know?

⚠️ With tariffs adding cost pressures and inflation proving sticky, crypto traders should brace for heightened volatility as monetary policy expectations shift.

📈 If prices keep rising, borrowing costs may stay high, making it harder for risky assets like crypto to bounce.

⚡ Short-term swings could be sharp, so traders might use smaller positions or set stop-losses.

🪙 Long-term holders should focus on the bigger picture, not daily moves, and be ready for choppy markets. #HotJulyPPI