A cooler-than-expected US Producer Price Index (PPI) for June ignited a buying spree in cryptocurrency markets on the evening of July 15, sending Bitcoin past $65,000 and Ethereum above $1,900. The rally triggered massive liquidations, with over 70,000 traders wiped out and total losses exceeding $317 million in 24 hours.
PPI Data Sparks Rally
The US Bureau of Labor Statistics reported on July 15 that the June PPI fell 0.3% month-over-month, the largest decline since the onset of the pandemic, driven primarily by a 6.4% drop in energy prices. This confirmed a cooling inflation trend, following the Consumer Price Index (CPI) release earlier in July that also showed easing price pressures. The data boosted risk appetite across financial markets, with cryptocurrencies leading the charge.
Bitcoin surged past the $65,000 resistance level, a key psychological barrier, while Ethereum reclaimed the $1,900 mark. The moves were accompanied by strong volume, indicating genuine buying interest rather than a short-lived squeeze.
$317 Million in Liquidations Hit Shorts
The rapid upward move caught many leveraged short traders off guard. According to CoinGlass, 70,133 traders were liquidated across centralized exchanges in the 24 hours ending July 15 evening. Total liquidation value reached $317 million, with the single largest liquidation order occurring on Binance’s ETH/USDT pair, worth $11.88 million.
The data underscores the risks of high leverage in volatile markets. As prices spiked, over-leveraged short positions were automatically closed, adding fuel to the rally. Long positions also saw some liquidations but accounted for a smaller share of the total.
Market Outlook
With inflation showing clear signs of moderation, traders are now pricing in a higher probability of the Federal Reserve pausing or even cutting interest rates later this year. This macro backdrop could continue to support risk assets like Bitcoin and Ethereum. However, the crypto market remains sensitive to sudden shifts in sentiment, and the recent liquidation event serves as a reminder of the dangers of excessive leverage.