Why is the Crypto Market Suddenly Crashing: $538 Million Long Liquidates in Just an Hour
The crypto market changes its trajectory from an uptrend to a major crash today, affecting $538M in liquidation - here’s what went wrong
Bitcoin crashed below $120k hours after hitting a new ATH, dragging the entire crypto market down.
U.S. PPI data at 3.3% YoY triggered panic selling, crashing most digital assets.
$1.04 billion in positions were liquidated, and $538 million in long positions were affected in just one hour.
Despite the visible greed sentiments in the crypto market, the digital assets are crashing again, staining the heatmap in red. Bitcoin, which just today created a new ATH at $124.4k, has moved below the $120k psychological resistance. Ethereum, XRP, and the rest of the altcoins also declined as fear binds investors, resulting in the liquidation of $538 million long crypto positions in less than an hour.
Notably, fear built in the crypto investors, affecting the broader market, as the PPI jumped 0.9%, the highest in more than two years (since June 2022). Additionally, the digital assets were on a significant uptrend until now, so the sellers jumped on the opportunity to get the profits before the fear builds on the chances of September rate cuts.
It is significant as U.S. netizens have been awaiting rate cuts. Even Donald Trump has pressured Jerome Powell for the same. Although hope was built with the July CPI data release, results could vary with the PPI.
