#MarketTurbulence Cryptocurrency in Panic: $1 Billion Evaporated Because Someone Said Three Letters - PPI

This week, something astonishing happened: $1 billion was liquidated in just a few hours. And all of this because the U.S. Producer Price Index, PPI, rose a little more than expected. You didn't hear wrong. It wasn't an explosion at a mining farm, nor a ban on bitcoin in some state, and not even a tweet from Elon Musk. Just a number came out in the report, and traders lost their minds.

Bitcoin even managed to drop below $112,000, although we were recently told that “below a hundred thousand it wouldn’t go anymore.” Sure, sure. And we were also told that coffee prices wouldn’t rise if we increased wages at Starbucks.

And here we are, while bitcoin tried to remember who it is - a future asset or just a trendy version of gold, the Ethereum ETF received an unexpected gift of $729 million in inflow. The institutions are saying: “Oh, panic? Great, let’s buy!”.

Why is this important? Because cryptocurrency, which was once promoted as independent of the system, now reacts to macroeconomic news faster than the bond market. We live in a world where bitcoin fears inflation, while Ethereum rejoices when everyone is nervous.