#MarketTurbulence

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

Something surprising happened this week: $1 billion was liquidated in a matter of hours. And all because the Producer Price Index of the U.S., PPI, rose a little more than expected. No, you are not mistaken. It wasn't 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 “wouldn’t go below a hundred thousand.” Sure, of course. We were also told that coffee prices wouldn’t rise if wages were increased at Starbucks.

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