Crypto Liquidations Top $1B as BTC, ETH, XRP, DOGE Dip
Crypto markets saw over $1 billion in crypto liquidations in 24 hours after hotter-than-expected U.S. Producer Price Index (PPI) data sparked fears of persistent inflation and delayed Fed rate cuts. Bitcoin’s brief record high above $123,500 was followed by a sharp sell-off that erased $866 million in long positions. Ether traders were the hardest hit, with $348.9 million liquidated, compared to Bitcoin’s $177.1 million. Other major tokens saw significant losses: Solana (SOL) lost $64.2 million, XRP $58.8 million and Dogecoin (DOGE) $35.8 million in leveraged liquidations. Bybit led platforms in these crypto liquidations, accounting for $421.9 million (92% longs), followed by Binance with $249.9 million and OKX at $125.1 million. The largest single wipeout was a $6.25 million ETH-USDT perpetual swap on OKX. Analysts say the unexpected PPI report paused the recent crypto rally. Jeff Mei of BTSE warned that inflation’s threat could delay Fed rate cuts beyond September. Nick Ruck of LVRG Research highlighted crypto’s growing sensitivity to macro liquidity shifts. Traders are now focused on upcoming U.S. economic data and Fed commentary for clues on market direction.
Bearish
The bearish classification reflects immediate downside pressure from over $1 billion in leveraged sell-offs following unexpected PPI data. Historically, surprise inflation metrics have triggered sharp crypto liquidations—similar to the 2021 PPI-induced corrections—highlighting the market’s sensitivity to U.S. economic indicators. The $866 million wiped from BTC longs and substantial ETH, SOL, XRP and DOGE liquidations suggest depleted buying momentum and heightened volatility. In the short term, traders are likely to stay on the sidelines, awaiting clearer Fed guidance and labor data before re-entering. Over the medium term, if inflation cools and rate-cut expectations resume, markets may recover. However, until there is concrete policy clarity, the risk of further liquidations persists, reinforcing a bearish outlook for the coming weeks.