Crypto Market Loses $133B in 24 Hours Amid Inflation Shock

The crypto market loses $133B in just 24 hours as unexpected inflation data rattles investor confidence. The sharp decline triggered over $1 billion in liquidations, particularly impacting long positions. This dramatic downturn signals heightened market sensitivity amid macroeconomic uncertainty and underscores persistent market volatility in crypto.

Crypto Market Loses $133B – What Sparked the Crash?

The primary catalyst behind this drastic selloff was inflation data—notably a hotter-than-expected Producer Price Index (PPI)—which curbed hopes for near-term Federal Reserve rate cuts. Fear of prolonged tightening led traders to liquidate positions across the board.

• Over $1B in crypto positions were liquidated, with Ethereum recording more than $350 million in losses, particularly from long holders.
• The total crypto market lost $133B, bringing the value down to approximately $3.98 trillion.
• As a result, nearly 90% of top-ten cryptocurrencies posted losses, with altcoins underperforming relative to Bitcoin.

Broader Implications of the $133B Crypto Rout

1. Institutional and Retail Rethink — This wipeout underscores the fragility of sentiment-driven investments and may prompt institutional investors to reassess exposure, especially in leveraged crypto products.
2. Reset in Risk Appetite — Following surging market highs, the rapid downturn highlights a pivot toward risk aversion. Traders may await clearer economic guidance before reentering.
3. Systemic Vulnerability Highlighted — The breadth of liquidations reflects structural risks embedded across both exchange platforms and DeFi protocols, signaling the need for improved safeguards.

Also Read: ETH Shorts Liquidated $40M in One Hour During Price Surge

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