Cryptocurrencies Bleed, Losing Over $264 Billion in Market Cap

From top to bottom intraday, #cryptocurrencies lost over $264 billion in market capitalization. Prior to the crash, short positions were being liquidated as #Bitcoin $BTC $117 747 made a new all-time high and an altseason appeared on the horizon—sending crypto’s total market cap to $4.17 trillion.

Nevertheless, the market suddenly pivoted, crashing down to $3.91 trillion, returning most gains from the past two days.

The pivot can be partially explained due to uncertainties following a July PPI inflation of 3.3% against the expected 2.5%. Core PPI inflation rose to 3.7%, also above expectations of 2.9%. This is relevant because most analysts were waiting for a significant interest rate cut in the Federal Reserve’s September FOMC meeting. Current data now puts the Fed in a difficult position, causing traders to derisk.