Key Takeaways
- The crypto market saw nearly $1 billion in liquidations on Thursday.
- Hotter-than-expected U.S. PPI data triggered a wave of selling.
- Bitcoin and Ethereum dropped sharply as traders unwound leveraged positions.
The crypto market was blindsided on Thursday after hotter-than-expected inflation data sent prices tumbling.
Within hours, Bitcoin (BTC) plunged from $122,000 to $117,500, wiping out close to a billion dollars in leveraged positions and leaving long traders nursing heavy losses.
PPI Data Knocks Out Bullish Momentum
On Aug. 14, the U.S. Producer Price Index (PPI) for July 2025 came in scorching hot, up 0.9% month-over-month versus expectations of 0.2%, and 3.3% year-over-year versus a 2.5% forecast.
Core PPI, which excludes food and energy, was even worse: 3.7% year-over-year compared to a 2.9% estimate, and 0.9% month-over-month compared to 0.2% expected.
These figures signaled stronger-than-expected wholesale inflation, instantly denting hopes for a September Federal Reserve rate cut.
Instead, traders were left bracing for the possibility of rates staying higher for longer — a prospect that typically dampens demand for risk assets like crypto.
The data hit just as bullish sentiment had returned to the market, derailing the momentum from Bitcoin’s recent all-time high above $124,000 and Ethereum’s surge past $4,750 earlier this week.
Flash Crash Liquidates $1 Billion in Crypto
According to Coinglass, 205,646 traders were liquidated in the past 24 hours, with losses totaling $960.63 million.
Long positions bore the brunt, accounting for $821 million of the wipeout, while shorts saw $139 million in liquidations.
The sell-off drove Bitcoin below $118,000 and pushed Ethereum under $4,500, marking one of August’s steepest single-day drops.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
