US PPI Data Far Exceeds Expectations, Market Optimism Cools
Yesterday, the United States released PPI data that far exceeded expectations, leading to a cooling of market optimism. Bloomberg reported that the Trump administration is in discussions with Intel regarding a plan for government equity investment, resulting in Intel’s stock surging over 7%, which propelled the S&P 500 index to a new high. The cryptocurrency market experienced a decline of 3.82% within 24 hours, with over $1.06 billion in liquidations across the network. Bitcoin (BTC) fell back to $118,000 after reaching an all-time high of $123,637 yesterday. SOL dropped below the $200 mark again, while BNB saw a slight decline after hitting a new high. Market sentiment remains in the greedy range at 68.
PPI Soars, Companies Begin to Pass on Costs
The US wholesale inflation rate in July saw the largest increase in three years, indicating that companies are starting to transfer the higher import costs associated with tariffs.
The Producer Price Index (PPI) in the US rose by 0.9% in July, significantly above the 0.2% expected by economists surveyed by Dow Jones, while data for June remained flat. Wholesale prices are typically a leading indicator of consumer prices. Although some traders noted that the increase mainly stemmed from “portfolio management” and rising airfare prices, excluding these factors would bring the data closer to market expectations, but it still indicates persistent price pressure.
The CME FedWatch tool shows that the market still estimates a 93% chance of a rate cut in September, slightly lower than the previous day, as investors believe that although the data is not ideal, it is insufficient to prevent the Federal Reserve from initiating a rate-cutting cycle.
Over $1 Billion in Liquidations Across the Network, Ethereum Staking Withdrawals Reach Historic High
The cryptocurrency market declined by 3.82% within 24 hours, with total market capitalization returning to $4.01 trillion, and over $1.06 billion in liquidations occurring across the network. Bitcoin (BTC) reached an all-time high of $123,637 yesterday but fell to $118,000 due to the PPI data, with $202 million in Bitcoin liquidated within 24 hours.
ETH was unable to challenge its all-time high, as the Ethereum staking market experienced rare turbulence yesterday. According to DeFi analyst Ignas, there are currently up to 671,000 ETH (about $3.2 billion) waiting to be unstaked, setting a new historical record for the network, with waiting times extending up to 12 days. This wave of unstaking is sparking significant market attention towards leveraged liquidations, arbitrage strategies, and the potential introduction of an ETH staking ETF.
(Ethereum Staking Withdrawals Reach Historic High! Up to $3.2 Billion Waiting to Withdraw, Is the Market Direction Changing?)
The cryptocurrency market saw broad declines, with BNB slightly retreating after reaching an all-time high of $868 yesterday, while SOL fell below the $200 mark again, recording a 24-hour decline of 4.42%. Dogecoin plummeted nearly 10%, yet market sentiment remains in the greedy range at 68.
Risk Warning
Investing in cryptocurrencies carries high risks, and their prices can fluctuate dramatically, potentially resulting in the loss of your entire principal. Please carefully assess the risks.