#MarketTurbulence

The cryptocurrency market has fallen due to inflation in the US: what is happening?

Inflation data in the US turned out to be worse than expected: PPI increased by 0.9% in July (month over month) and 3.3% year over year. This exceeded forecasts and diminished hopes for a quick reduction in Fed rates.

Consequences for cryptocurrencies:

- BTC fell below $119,000, and ETH dropped to $4,550.

- Altcoins (SOL, XRP) also showed a decline of 4-7%.

- Liquidations in the market reached $1 billion, indicating panic among traders.

Why is this important?

Inflation + a strong labor market mean that the Fed may keep high rates for longer. Although some analysts believe in future altcoin growth, the market is currently reacting to macroeconomic risks.

Conclusion: a short-term correction is possible, but confidence in cryptocurrencies remains.