#MarketTurbulence

Cryptocurrencies in panic: $1 billion evaporated because someone said three letters - PPI

This week something surprising happened: $1 billion was liquidated in a matter of hours. And all because the U.S. Producer Price Index, PPI, rose a little more than expected. No, you are not mistaken. It was not an explosion at a mining farm, nor a ban on bitcoin in some state, nor even a tweet from Elon Musk. A number simply came out in the report, and traders lost their minds.

Bitcoin even fell below $112,000, although not long ago we were told that it “would not drop below a hundred thousand.” Sure, of course. They also told us that coffee prices wouldn't rise if wages at Starbucks were increased.

And so, while bitcoin was trying to remember who it is - a future asset or simply a modern analog of gold, Ethereum ETFs received a sudden gift in the form of $729 million in inflows. Institutional investors say: “Oh, panic? Great, we buy!”.