Crypto Prices Plummet on Hot PPI Print and Rate Hike Bets
Bitcoin and other major cryptocurrencies fell sharply on Thursday after hotter-than-expected producer inflation data raised bets of a rate hike by the US Federal Reserve. According to Coinglass, over $450 million was liquidated from the cryptocurrency market in the last 24 hours, with $359 million in bullish long positions evaporating.
The global cryptocurrency market capitalization declined by 1.37% to $2.66 trillion after a hot PPI print of 5.4% year-over-year in August, exceeding economists' expectations of 5.3%. This has raised the odds of a rate hike at next week's Fed meeting from 61% to 72%, according to the CME FedWatch tool.
Crypto analyst Michaël van de Poppe suggested that Ethereum (ETH) may experience more momentum than Bitcoin, predicting it will rise over $3,000. On-chain analytics firm CryptoQuant noted that retail 'Greed' sentiment is being used as exit liquidity, anticipating further corrections for late buyers.