The crypto market faced a sharp downturn in the past 24 hours, with over $1 billion in leveraged positions wiped out following hotter-than-expected U.S. Producer Price Index (PPI) data. The inflation surprise dampened hopes for early Federal Reserve rate cuts, sparking a wave of risk-off sentiment across digital assets.
The sell-off came just hours after Bitcoin ($BTC ) surged to a new all-time high above $123,500, only to face swift profit-taking and liquidation pressures. Dogecoin (DOGE) led the losses among major cryptocurrencies, tumbling 9% to $0.2305, while Solana (SOL), XRP, and BNB Chain’s BNB saw declines between 3% and 7%.
According to CoinGlass liquidation data, $866 million worth of long positions were erased—over six times the $140 million in shorts—reflecting the sudden shift in market sentiment. Ether $ETH
traders bore the brunt, with $348.9 million liquidated, followed by Bitcoin at $177.1 million. $SOL Solana, XRP and Dogecoin recorded liquidations of $64.2 million, $58.8 million, and $35.8 million, respectively.
With volatility spiking and traders reassessing risk, the market now faces a critical test: whether buyers can step back in to support prices or if a deeper correction is on the horizon.