📅 August 14 | New York, United States
An unexpected economic data point hit the crypto market once again: the Producer Price Index (PPI) in the US exceeded expectations, raising alarms about more persistent inflation than the Federal Reserve had anticipated. The impact was immediate: more than $1 billion in leveraged positions were liquidated in a matter of hours, leaving thousands of traders out of the loop, and Bitcoin and Ethereum plummeting before stabilizing.
From Economic Data to Flash Crash
The PPI report revealed a rise that was higher than analysts expected, suggesting that inflationary pressures in the supply chain remain.
This figure fueled fears that the Fed could keep interest rates high for longer, reducing appetite for risky assets.
Within minutes, the crypto derivatives market became a battleground:
Total liquidations: more than $1 billion.
Long positions (bullish) were the hardest hit, accounting for more than 80% of the total.
Bitcoin fell below $66,000, while Ethereum retreated below $4,200 before partially recovering.
A fragile market in the face of macroeconomic shocks
These movements show how sensitive the crypto market remains to macroeconomic surprises.
High leverage, coupled with overconfidence following recent rallies, amplified the damage.
Analysts warn that, although the underlying bullish trend is not broken, events like this are brutal reminders of the inherent volatility.
On exchanges, cascading sell orders triggered forced liquidations that wiped out even the most comfortable positions. The speed of the correction made it clear that bots and automated risk management systems dominated the reaction, while retail traders barely reacted.
Topic Opinion:
Macroeconomics rules, and no matter how optimistic the market is, a single piece of data can change everything in minutes. Risk management and discipline must be a priority, especially in environments of high volatility and inflationary surprises.
💬 Do you think inflation will continue to slow the crypto rally or was it just a passing scare?
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