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Cryptocurrency markets react to U.S. inflation and PPI data
The cryptocurrency market is experiencing significant volatility driven by U.S. macroeconomic data. Following the release of August Consumer Price Index (CPI) data, which showed inflation holding at 3.4%, and a hotter-than-expected Producer Price Index (PPI) of 5.4%, market participants are adjusting expectations for Federal Reserve interest rate decisions. CME FedWatch data indicates an 86.5% probability of a rate hike in the upcoming September meeting.
Ethereum (ETH) has shown notable resilience, surging past the $2,500 and $2,600 levels. This rally triggered approximately $215 million in short liquidations on Bitstamp. On-chain data reveals a divergence in holder behavior, with whale wallets adding 82,000 ETH while retail wallets sold 307,000 ETH. Despite the volatility, Ethereum's market capitalization has climbed back above $300 billion.
Bitcoin (BTC) has also faced turbulence, fluctuating around the $77,000 to $79,000 range. While sell-side risk has decreased according to Glassnode, U.S. spot Bitcoin ETF investors face significant paper losses. Across the broader market, a massive liquidation event occurred over a 24-hour period, with 94,887 traders losing a combined $684 million. XRP also saw movement, with $13.40 million in positions liquidated following the PPI report, even as spot XRP ETFs recorded inflows.
Entities
Binance · BitMine · Bitcoin · Bitstamp · Coinbase · Ethereum · Ethereum · Federal Reserve · Glassnode · U.S. Labor Department · Wintermute · XRP
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] 94,887 traders experienced $684 million in liquidations over a 24-hour period. www.blocktempo.com · www.tokenpost.kr
- [○ 1 SOURCE] The Producer Price Index rose to 5.4% year-over-year, higher than the 5.3% forecast. coinedition.com
- [○ 1 SOURCE] Bitcoin’s sell-side risk ratio dropped to 7, down from 16 in September. www.cryptobreaking.com
- [● 4 SOURCES] The U.S. Core Consumer Price Index rose by 0.3% in August, exceeding the 0.2% forecast. bitcoinethereumnews.com · decrypt.co · www.blocktempo.com
- [○ 1 SOURCE] $13.40 million in XRP positions were liquidated, with $13.01 million coming from long positions. coinedition.com
- [○ 1 SOURCE] U.S. spot Bitcoin ETF investors face approximately $3.9 billion in paper losses. www.cryptobreaking.com
- [DISPUTED] The probability of a Federal Reserve rate hike in the September 15–16 meeting rose to 86.5%. www.tokenpost.kr · decrypt.co
- [○ 1 SOURCE] Whale wallets added 82,000 ETH last week while retail wallets sold 307,000 ETH. captainaltcoin.com
- [○ 1 SOURCE] Wintermute transferred approximately $160.3 million worth of ETH to Binance and Coinbase. coinpedia.org
- [○ 1 SOURCE] Ethereum triggered $215 million in short liquidations on Bitstamp following the CPI report. news.bitcoin.com
- [○ 1 SOURCE] Spot XRP ETFs recorded $5.14 million in inflows, driven by Franklin’s XRPZ fund. coinedition.com
- [○ 1 SOURCE] The Producer Price Index rose to 5.4% year-over-year, exceeding the 5.3% forecast. coinedition.com