A brief rally following cooler-than-expected US producer price data fizzled overnight, with Bitcoin retreating to $64,608 and Ethereum staging a stronger gain. The pullback triggered $309 million in liquidations across the crypto market, predominantly short positions, as the Fear & Greed Index remained stuck at 25, signaling extreme fear.
Bitcoin Retreats After Brief Push Above $65K
Bitcoin oscillated between $64,485 and $65,600 over the past 24 hours on Binance, peaking at the upper bound before failing to hold. By Tuesday morning, the largest cryptocurrency had slipped 0.31% to around $64,608, with trading volume of roughly $1.22 billion. The 14-day high of $65,385 was recorded at 23:00 UTC on July 15, a level that proved unsustainable as buying pressure faded overnight.
Ethereum Outperforms, Up Nearly 20% From July Lows
Ethereum displayed relative strength, climbing 1.88% over the same period to trade at $1,915. It rallied from an intraday low of $1,864 to a high of $1,946.50. Since its July 2 low of $1,601, ETH has surged approximately 19.6%, making it the best performer among major cryptocurrencies during the recent recovery.
$309 Million in Liquidations, Shorts Bear the Brunt
Data from CoinGlass showed 78,540 traders were liquidated in the 24 hours leading up to press time, with total liquidations reaching $309 million. Short positions accounted for $184 million, or nearly 60% of the total, as the overnight price spike caught bearish traders off guard. The largest single liquidation order was a $11.88 million ETH/USDT position on Binance.
Macro Tailwind From US PPI Data
The initial move higher was triggered by the June Producer Price Index (PPI) released Wednesday, which came in below expectations and reinforced the disinflation narrative following a soft CPI reading. US stock indices closed higher, with the Dow, S&P 500, and Nasdaq gaining 0.29%, 0.38%, and 0.62% respectively. Apple surged 4% to an all-time high. However, the positive macro impulse appeared short-lived for crypto, with buying momentum fading after the initial spike.
Altcoins Stall as Focus Shifts to BTC and ETH
Other major tokens showed little movement. Solana dipped 0.81% to $76.98, still below its two-week high of $83.43 set on July 4. XRP edged up 0.33% to $1.11, also lagging behind its recent peak of $1.1797. Capital flows concentrated on Bitcoin and Ethereum, leaving altcoins without independent catalysts.
Extreme Fear Persists Despite Price Recovery
Despite the rebound from multi-week lows, sentiment remains deeply pessimistic. The Fear & Greed Index stayed at 25, unchanged from the previous day and within the "extreme fear" zone where it has lingered for over a week. Market participants now look to sustained inflation trends and any Fed policy signals ahead of the next rate decision for the next directional move.