US PPI Generates Shockwave as 3.3% Annual Rise Triggers Market Meltdown, Over $500 Million in Crypto Longs Liquidated

• The crypto market took a nosedive, as roughly $1.04 billion in crypto positions were liquidated in 24 hours
• Out of that amount, around $538 million were long positions being wiped out in less than an hour
• Ethereum long traders had the biggest losses, with liquidations going over $177 million

The Producer Price Index (PPI) for July rose 0.9% month-over-month, marking its largest monthly gain since May 2022. Year-over-year, PPI climbed 3.3%, which is well above Wall Street’s forecast of approximately 2.5%.

Core PPI (excluding food, energy, and trade services) posted a 0.6% monthly gain and 2.8% year-over-year, its steepest rise since early 2022.

What a difference a day makes. This hot PPI report comes just two days after the CPI report came in cool. Here’s our analysis of that release.

These figures indicate a big inflationary pressure at the wholesale level, primarily fueled by the rise in service costs.

Shortly after the PPI report came out, the crypto market took a nosedive, as roughly $1.04 billion in crypto positions were liquidated in 24 hours. Out of that amount, around $538 million were long positions being wiped out in less than an hour.

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