Crypto Market Sees Sudden Decline Amid Inflation Fears and Rate Hike Bets
The crypto market experienced a significant downturn over the past 24 hours, driven by hot inflation data and a heightened likelihood of a Federal Reserve rate hike. According to CryptoRank, Bitcoin's price dropped to $77,111.05, but remains up 4.9% for the week.
Over $129 million in long positions were liquidated in an hour, with many assets feeling the pressure of risk aversion. The global crypto market cap fell 1.8% to $2.71 trillion over the past day.
Ethereum traded at $2,460.11, down 1.2% in 24 hours and 2.5% over seven days. Other notable declines included BNB's 1.8% drop to $715.81, XRP's 3.6% fall to $1.35, and Solana's 2.5% slide to $99.77.
CryptoQuant analyst Darkfost attributed the sell-off to the U.S. August Producer Price Index rising above expectations, combined with a European Central Bank rate hike driving aggressive sell orders on Binance exceeding $1.4 billion.