Bitcoin and Ethereum Plunge as Hot U.S. CPI Sparks Nearly $1 Billion in Crypto Liquidations

Bitcoin and Ethereum extended their losses on October 15 after hotter-than-expected U.S. inflation data rattled financial markets, triggering nearly $1 billion in cryptocurrency liquidations as leveraged traders faced another wave of forced selling.

Bitcoin fell toward $80,000, trading around $81,000 after retreating from levels above $83,000 before the inflation release. Ethereum suffered heavier losses, dropping more than 6% over 24 hours to approximately $2,365.

The sell-off followed the October 14 release of September’s Consumer Price Index (CPI), which showed annual U.S. inflation accelerating to 3.7%, above the 3.6% market forecast and August’s 3.4% reading.

Liquidations accelerated overnight, with Ethereum accounting for the largest losses among major cryptocurrencies.

U.S. Inflation Hits 3.7% as Gasoline Prices Surge

The Bureau of Labor Statistics reported a 0.6% monthly increase in consumer prices, up from 0.4% in August.

Gasoline prices jumped 9.1% during September, accounting for more than half the overall monthly inflation increase. Energy costs rose 5.2%, while gasoline inflation reached 34.2% on an annual basis.

Core CPI, which excludes food and energy, increased 0.3% monthly and 2.6% annually, exceeding the 2.5% consensus forecast.

The stronger inflation reading complicated expectations for Federal Reserve monetary policy, increasing speculation that interest rates could rise again before the end of 2026.

Cryptocurrency markets had already faced pressure from energy prices and inflation concerns earlier this year, when geopolitical tensions pushed oil prices higher.

Ethereum Leads $942 Million Liquidation Wave

The CoinGlass liquidation tracker recorded approximately $942.1 million in cryptocurrency derivatives liquidations over 24 hours in an early October 15 market snapshot.

Long positions accounted for $863.3 million, representing more than 91% of the total.

A particularly severe liquidation wave wiped out approximately $489.4 million in one hour as falling prices forced highly leveraged positions to close.

Ethereum led individual assets with roughly $283.1 million in liquidations, including more than $261 million from bullish positions. Bitcoin followed with approximately $196 million, primarily affecting leveraged longs.

Binance accounted for approximately 53.7% of the recorded liquidations, with the largest individual position involving a $12.03 million BTC/USDT long closed at $80,208.96.

The concentration of long liquidations added selling pressure to an already declining market as exchanges automatically closed positions that could no longer meet margin requirements.

Bitcoin Faces Renewed Pressure Before October Fed Decision

The inflation surprise has shifted attention toward the Federal Reserve’s October 27–28 policy meeting, where officials will decide whether another rate increase is necessary.

The Fed raised its benchmark interest rate in September to a range of 3.75% to 4%, and persistent inflation has strengthened expectations of further monetary tightening.

Higher borrowing costs and rising Treasury yields can weaken demand for leveraged cryptocurrency positions, particularly when markets are already facing substantial selling pressure.

Bitcoin previously rallied following softer-than-expected U.S. inflation data in April, when easing core price pressures supported risk appetite.

The next major U.S. inflation-related release is the September Producer Price Index on October 15, followed by the Federal Reserve’s interest rate decision on October 28.

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