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Bitcoin Tumbles as Markets Reel, in the Wake of Gloomy Inflation Data

2025-08-14 19:49:23

Bitcoin Tumbles as Markets Reel, in the Wake of Gloomy Inflation Data

Main Idea

Bitcoin and other cryptocurrencies experienced a significant price drop following the release of higher-than-expected U.S. inflation data, which also impacted traditional markets.

Key Points

1. Bitcoin (BTC) dropped sharply after the U.S. Bureau of Labor Statistics reported a 0.9% increase in the Producer Price Index (PPI), exceeding estimates of a 0.1-0.2% rise.

2. BTC fell to $117K from $122K, while ether (ETH) dropped roughly 3.50% to $4.5K, and major stock indices (S&P 500, Nasdaq, Dow) also declined.

3. Trading volume for BTC surged over 30% in 24 hours, reaching $108.16 billion, but market capitalization fell 3.09% to $2.34 trillion.

4. BTC futures open interest rose 1.08% to $83.13 billion, while liquidations spiked to $225.75 million, with bulls losing $159.25 million due to the inflation shock.

5. Bitcoin's price volatility followed similar trends in the Consumer Price Index (CPI), which had also recently climbed to a two-year high.

Description

The digital asset’s price saw a precipitous drop early Thursday morning after the U.S. Bureau of Labor Statistics published data revealing record inflation metrics. Inflation Shock Triggers Bitcoin Slump Just seconds after the U.S. Bureau of Labor Statistics (BLS) published its inflation data at 8:30 am on Thursday, bitcoin ( BTC) fell off a cliff.

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