14.08.2025 16:06
A significant cryptocurrency market crash occurred following the release of unexpectedly high US Producer Price Index (PPI) inflation data. The July PPI surged 0.9%, pushing the core PPI to a robust 3.7%, a figure that jolted investor confidence and triggered widespread selling across the crypto landscape.
This sharp increase in inflation resulted in over $1.1 billion in cryptocurrency liquidations within a 24-hour period. Among the hardest hit were major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Sui (SUI), Enjin Coin (ENA), and Chainlink (LINK). The market downturn saw the global crypto market cap plummet by more than 3%, a decrease exceeding $170 billion, dropping from $4.19 trillion to $4.02 trillion in a single day. This dramatic decline unfolded primarily during US trading hours on Thursday.
The impact was particularly pronounced on Bitcoin, which relinquished earlier gains, falling from around $24,000 to approximately $22,000. Ethereum, despite prior upward momentum, failed to reach new all-time highs and experienced substantial losses. Altcoins suffered even more significantly, with many exhibiting substantial profit-taking. Dogecoin and Shiba Inu, two prominent meme coins, experienced double-digit percentage declines. The short-term outlook for the altcoin market appears bearish.
Adding to the market's instability, a significant $6.5 billion in crypto options were set to expire on Friday, potentially exacerbating downward pressure. Data from Coinglass revealed over 214,000 traders were liquidated in the 24-hour period, with the largest single liquidation involving a $6.25 million ETH-USDC swap on the OKX exchange. The sheer volume of liquidations was staggering, with over $450 million in long positions liquidated within a single hour. In total, $790 million in long positions and $235 million in short positions were liquidated over the 24-hour period. The substantial inflationary pressures and the impending options expiry created a perfect storm for the crypto market crash, leaving investors facing substantial losses.
