A stronger-than-expected Producer Price Index (PPI) rattled crypto markets, leading to $1 billion in liquidations as Bitcoin slid 2%+ and Ethereum dipped.
July’s PPI climbed 0.9% MoM and 3.3% YoY, outpacing the 2.5% YoY forecast and marking the fastest annual rise in five months. The data triggered a cascade of $782M in long liquidations, with the biggest single loss hitting a $6.25M ETH trade on Bybit.
Despite the inflationary signal, Fed futures still imply a 92% chance of a September rate cut, per the CME FedWatch Tool, indicating traders see this as a potential blip rather than a trend—unless upcoming CPI data confirms overheating.
