Crypto: markets panic after unexpected figures on US inflation

The Crypto market has just undergone one of its most striking reverse of the year. In a few hours, Bitcoin lost more than $ 5,000, causing a widespread rout of other assets. Indeed, the publication of an American production price index (PPI) far beyond forecasts revives the spectrum of persistent inflation. This statistic, which surprises as much Wall Street as the crypto ecosystem, upsets the expectations of monetary policy and triggers a cascade of liquidations on lever effects, accentuating the lower pressure.

The inflation of US producers takes everyone short

While Bitcoin has crossed the $ 124,000 mark, the session on Thursday was dominated by an unexpected figure: the American PPI increased by 0.9 % in July compared to the previous month, and 3.3 % over a year, its fastest rate since February.

According to official data,, “Economists were counting on an annual increase of approximately 2.5 %”which reveals the magnitude of the surprise. It is also the highest monthly progression since 2022.

This result clearly contrasts with the consumer price index (ICC) published a few days earlier, which displayed inflation of 2.7 % over one year, considered compatible with an upcoming drop in interest rates.

Here are the key facts to remember:

• US PPI in July: +0.9 % over a month and +3.3 % over a year (higher monthly increase since 2022);
• The forecasts of economists: +2.5 % over a year, which makes the surprise particularly marked;
• The ICC published earlier in the week: +2.7 % over a year, initially fueling optimism on the drop in rates;
• An impact on monetary expectations: the probability of a drop in rates of 0.25 % by the Fed In September from 99.8 % to 90.5 %.

For markets, this decline in anticipations reflects the possibility that the federal reserve chooses to delay in the face of inflationary pressures still anchored in the production chain. Bitcoin, which had just reached a historic summit at $ 124,000, quickly won up to $ 117,400, resulting in its fall all the main cryptos.

The lever effect market taken in turmoil

The impact of the inflationary shock goes beyond cash. The derivative products market has experienced a real blast. After Coinglass data,, “More than a billion dollars in crypto positions were liquidated in 24 hours, including around 782 million long positions”.

The largest individual liquidation concerns an ETH/USDT position of $ 6.25 million on Bybit. This wave of unlocking was amplified by an extreme lever environment: the total open interest on altcoins reached a record of $ 47 billion.

This configuration accentuated volatility, transforming a technical correction into a massive sales movement. From the point of view of graphic analysis, the formation of a double summit on Bitcoin was noted, a diagram already observed in January and which had preceded a major correction. In the immediate future, the $ 112,000 threshold is a capital support. Above, a consolidation scenario could settle. Below, the risk of a return to $ 105,000 – $ 110,000 would increase significantly.

Thursday's session illustrates the persistent vulnerability of the crypto market in the face of macroeconomic shocks. If the long -term bullish trend of Bitcoin is not called into question by this punctual withdrawal, the episode recalls that no rally is linear. The combination of a saturated lever market and a loaded macroeconomic agenda promises to maintain volatility at a high level in the coming weeks.