8.6 Million Dollar Liquidation of Bullish Cryptoasset Traders──ETH, BTC, XRP, DOGE Down by Up to 9% | CoinDesk JAPAN

• Following unexpected inflation data, leveraged positions worth over 1 billion Dollar were liquidated.
• Bitcoin recorded an all-time high of over $123,500, but due to sharp selling pressure, $866 million in long positions were wiped out.
• Traders are closely watching the U.S. economic indicators and the movements of the Federal Reserve to assess future market trends.

In the cryptoassets market, over 1 billion Dollars (approximately 150 billion yen, based on an exchange rate of 1 Dollar = 150 yen) in leveraged positions were liquidated in the past 24 hours. This was driven by data on the American Producer Price Index (PPI) that exceeded expectations, fueling inflation concerns and delaying expectations for interest rate cuts by the Federal Reserve (FRB).

This sell-off occurred a few hours after Bitcoin (BTC) surpassed its all-time high of $123,500, as traders attempted to fully mitigate risk. The major meme coin Dogecoin (DOGE) fell by 9%, marking the highest decline among major cryptocurrencies. Solana (SOL), XRP, and Binance Coin (BNB) dropped by 3-7%.

According to the data, due to the sharp downward movement in price from the recent high, long positions worth $866 million (approximately ¥129.9 billion) were liquidated. This is more than six times the short positions worth $140 million (approximately ¥21 billion).

Ethereum (ETH) traders suffered the biggest hit with a liquidation of 348.9 million dollars (approximately 52.335 billion yen). Next, Bitcoin saw a liquidation of 177.1 million dollars (approximately 26.565 billion yen). The liquidation amounts for Solana, XRP, and Dogecoin were 64.2 million dollars (approximately 9.630 billion yen), 58.8 million dollars (approximately 8.820 billion yen), and 35.8 million dollars (approximately 5.370 billion yen), respectively.

By exchange, Bybit has the largest share of losses at $421.9 million (approximately ¥63.285 billion), with over 92% of those losses attributed to excessive leverage long positions. Following this, Binance faced $249.9 million (approximately ¥37.485 billion) in losses, and OKX had $125.1 million (approximately ¥18.765 billion) in liquidation.

The largest single liquidation was a ETH-USDT perpetual swap worth 6.25 million Dollar (approximately 937.5 million yen) on OKX.

Jeff Mei, COO of the cryptoasset exchange BTSE, stated that the surprise in inflation has "put a brake on last week's astonishing rise in cryptoasset prices," adding that the market is "likely to remain at current levels until more positive guidance comes from the Fed." He pointed out that "the threat of inflation still exists and may influence the possibility of a rate cut in September."

Nick Luck, the director of LVRG Research, pointed out the macroeconomic pressures on the recent rise of cryptoassets.

"This week in the cryptoassets market, while BTC reached a new all-time high, it was subsequently affected by macroeconomic fluctuations," he stated in a Telegram message. "The inflation rate has shown a sharp rise far exceeding expectations, increasing concerns over the stubbornness of inflation and delaying expectations for rate cuts by the Fed."

"This selling pressure underscores that cryptoassets are becoming increasingly sensitive to changes in macroeconomic liquidity. Traders are currently focusing on the employment statistics in early September for clues regarding the Fed's next move. Since the fundamentals that have driven the bullish market for cryptoassets remain intact, the market is optimistic about a recovery," added Mr. Rack.

Traders are currently watching the release of U.S. economic indicators and comments from the Federal Reserve, with September expected to be the next significant turning point in monetary policy.

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