NewsletterWhy is the Crypto Market Suddenly Crashing: $538 Million Long Liquidates in Just an Hour
Highlights
- Bitcoin crashed below $120k hours after hitting a new ATH, dragging the entire crypto market down.
- U.S. PPI data at 3.3% YoY triggered panic selling, crashing most digital assets.
- $1.04 billion in positions were liquidated, and $538 million in long positions were affected in just one hour.
Despite the visible greed sentiments in the crypto market, the digital assets are crashing again, staining the heatmap in red. Bitcoin, which just today created a new ATH at $124.4k, has moved below the $120k psychological resistance. Ethereum, XRP, and the rest of the altcoins also declined as fear binds investors, resulting in the liquidation of $538 million long crypto positions in less than an hour.
U.S. PPI Shock Crashes Crypto Market
The U.S. Producer Price Index (PPI) has left investors in complete turmoil, as July 2025 data came in much hotter than expected, crashing the crypto market. The U.S. PPI has increased 3.3% in YoY, much higher than economists’ anticipations of 3.0% and higher than the June data.
- Source: CoinMarketCap, Crypto Heat Map
Notably, fear built in the crypto investors, affecting the broader market, as the PPI jumped 0.9%, the highest in more than two years (since June 2022). Additionally, the digital assets were on a significant uptrend until now, so the sellers jumped on the opportunity to get the profits before the fear builds on the chances of September rate cuts.
It is significant as U.S. netizens have been awaiting rate cuts. Even Donald Trump has pressured Jerome Powell for the same. Although hope was built with the July CPI data release, results could vary with the PPI.
Crypto Market Crash Liquidated $538 Million Long
Moments after the PPI data release, investor sentiment was triggered, resulting in a mass sell-off, liquidating long positions. CoinGlass data reveals that $1.04 billion has been liquidated in 24 hours, affecting 218,017 traders. Out of this, $565 million has been liquidated in just an hour, and $538 million came from long crypto positions alone.
- Source: CoinGlass, Crypto Liquidation Data
The biggest liquidation in an hour has happened on Ethereum, wiping out $110.93 million ($102.33 million long and $8.61 million short). Bitcoin comes next with $103.33 million crypto liquidation ($100.34 million long and $2.99 million short), followed by XRP, and others.
- Source: CoinGlass, Crypto Liquidation Heatmap
Notably, the largest single wipeout has taken place on Bybit, losing $10 million on the BTCUSD long. Many experts have already indicated this possibility of a major correction. This is because the macro events leave a major impact on the crypto market and its performance.
Frequently Asked Questions (FAQs)
1. Why did the U.S. PPI release trigger a crypto market crash?
2. How much was liquidated today?
3. Which cryptocurrency faced the biggest liquidation?
- Trump-Backed Alt5 Sigma Under Fire for Possible SEC Rule Violations, New Report Reveals
- Just-In: Spot Solana ETF Records Largest Outflow While XRP ETFs Nets $90M
- Breaking: U.S. FDIC to Release First Stablecoin Guidelines Under GENIUS Act this Month
- Fed Chair Jerome Powell Speech: Bitcoin Climbs as December Rate Cut Odds Waver
- Crypto ETF News: Vanguard to Enable Trading of BTC, XRP, SOL ETF on Its Platform
- XRP Price Prediction as Ripple Gets MAS Licence in Singapore
- Ethereum Price Crashes Below $3,000 as $500M Longs Liquidated: What’s Next?
- Pi Network Price Prediction Ahead of December’s 190M Scheduled Unlock
- Dogecoin Price Below $0.15 as Crypto Market Crashes: Will $0.10 Hold?
- Will the Binance Coin Price Rebound as a Key RWA Metric Jumps 99%
- AVAX Price Prediction After Bitwise Files for a Staking ETF — A Rebound Coming?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
