$860M in Crypto Long Bets Wiped Out as Inflation Fears Trigger Market Sell-Off

by Crypto Hobby

Updated August 16, 2025

Crypto Market Plunge: Over $1 Billion in Leveraged Positions Liquidated

Cryptocurrency markets experienced a significant downturn, with over $1 billion in leveraged positions being liquidated within the past 24 hours.

This sharp sell-off followed the release of hotter-than-expected U.S. Producer Price Index (PPI) data, which fueled concerns about persistent inflation and potentially delayed Federal Reserve interest rate cuts.

The market reversal occurred just hours after Bitcoin reached a new all-time high above $123,500, triggering a broad unwinding of risk across various digital assets.

Key Takeaways

Over $1 billion in leveraged crypto positions were liquidated due to unexpected U.S. inflation data.
Bitcoin's price dropped significantly after hitting a record high above $123,500, leading to the liquidation of $866 million in long positions.
Ether traders faced the largest losses, with $348.9 million liquidated.
Traders are closely monitoring U.S. economic indicators and Federal Reserve signals for future market direction.

Impact on Major Cryptocurrencies

The market downturn saw major cryptocurrencies experience notable price drops.

Dogecoin, a prominent memecoin, led the losses among major digital assets, falling by 9%.

Other significant cryptocurrencies such as Solana (SOL), XRP, and BNB Chain's BNB also saw declines ranging from 3% to 7%.

This broad-based sell-off resulted in the liquidation of $866 million in long positions, a stark contrast to the $140 million in short positions that were liquidated, indicating a strong bearish sentiment reversal.

Liquidation Breakdown by Asset and Exchange

Ether (ETH) traders bore the brunt of the liquidations, with a total of $348.9 million wiped out.

Bitcoin (BTC) followed closely, with $177.1 million in liquidations. Other cryptocurrencies also saw substantial losses, including Solana ($64.2 million), XRP ($58.8 million), and Dogecoin ($35.8 million).

The majority of these liquidations occurred on major exchanges, with Bybit accounting for the largest share at $421.9 million, primarily from overleveraged long positions.

Binance saw $249.9 million in liquidations, while OKX reported $125.1 million.

The largest single liquidation event was a $6.25 million ETH-USDT perpetual swap on OKX.

Market Sentiment and Future Outlook

Market analysts suggest that the unexpected inflation data has put a damper on the recent crypto rally.

Experts anticipate that the market may stabilize around current levels until more definitive guidance emerges from the Federal Reserve.

The persistent threat of inflation could influence the timing of potential rate cuts, with September being a key month to watch for monetary policy shifts.

Traders are now keenly observing upcoming U.S. economic data releases and Federal Reserve commentary for insights into the market's future trajectory.

Despite the short-term volatility, some remain optimistic about a market rebound, citing the underlying fundamental values driving the current bull run in crypto.