Bitcoin fell more than 2% while Ethereum’s native token slightly fell shortly after inflation data revealed U.S. producer prices jumped more than expected in July, reviving macro worries and prompting a wave of derivatives liquidations across crypto markets.
The Producer Price Index (PPI) rose 0.9% month over month and 3.3% year over year, the fastest annual pace since February, according to data released on Thursday. Economists had looked for around 2.5% year-over-year.
CoinGlass showed more than $1 billion in positions liquidated over 24 hours, including roughly $782 million in longs. The largest single wipeout was a $6.25 million ETH/USDT position on Bybit, according to the data.
The inflation reading likely stoked concern that economic pipeline pressures could complicate the Federal Reserve’s path to easing. Even so, interest-rate futures still imply elevated odds of a September rate cut, suggesting markets view the PPI spike as a potential outlier unless confirmed by coming data. The CME FedWatch Tool tagged chances of a dovish pivot at 92%, slightly down from over 94% earlier this week.
Odds of a September Fed rate cut are at 92%. Image: CME FedWatch
Derivatives positioning remains a focal point. As The Block reported previously, open interest across altcoins has climbed to a record $47 billion, a leverage build that analysts say can amplify both rallies and drawdowns when volatility picks up.
The downbeat PPI reading arrived just days after a softer consumer-price report supported a risk-on tone. With inflation signals mixed and positioning stretched, experts expect elevated two-way volatility into next week’s jobs data and upcoming meeting from last month’s Federal Open Market Committee session.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
