Crypto Squeeze: Bitcoin, Ether Trigger Historic Short Liquidations

According to TradingView, the latest US inflation data brought an unexpected boost to cryptocurrency derivatives markets. The August report on the core personal consumption expenditures (PCE) index showed that price pressures in the US economy remain persistent: prices for more than half of the components in the PCE basket are still rising faster than the target rate.

Despite stubborn inflation and a tough macroeconomic backdrop, Bitcoin and the largest altcoins triggered a powerful wave of buying activity that completely overwhelmed sellers. Even though prices for more than half of the components in the PCE basket are still rising faster than the target rate, short sellers instantly found themselves trapped.

The market interpreted cooling inflation as a green light for risk assets, triggering a cascade of forced liquidations of leveraged positions. According to analytics platform CoinGlass, the market steamrolled 73,709 traders over 24 hours, wiping out $259.12 million in positions.