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CPI off the charts—why did the crypto market rise instead? $ETH shorts got wiped out; $700 million evaporated directly!

Last night’s data came out: core CPI rose 0.3% month-over-month, higher than expectations, and the probability of a rate hike in September jumped straight to 85%.

By the script, the crypto market should’ve fallen.

Instead: $BTC dipped to probe around 76,000, then violently rebounded and surged back above 78,000—up more than 3%. ETH followed suit, briefly ripping back to 2665.

The real protagonist is $ETH . ETH surged as much as 8.3% intraday, hitting its biggest jump in three weeks. Over the past 24 hours, more than $300 million worth of Ethereum short positions were forced to close. On Binance alone, $76 million worth of ETH positions were liquidated—most of them were shorts that had to buy back to cover.

Total liquidation data across the market: In 24 hours, the entire network liquidated $732 million, with $425 million liquidated in shorts and $307 million in longs. Shorts were clearly hit harder—more than 100,000 people got buried 🥺

Before the data, a bunch of people were betting on “inflation above expectations → rate hikes → sell-off,” stacking shorts to the max. But when the price dropped, it didn’t break key support. The shorts panicked and started closing positions in bulk, covering and buying back one order after another—pushing the price straight up.

It really comes down to two lines:

First, the bad news has landed. The rate-hike odds jumped from 60% to 85%. What the market fears most isn’t “whether they’ll hike,” but “not knowing whether they will.”
But now it’s basically a clear play, and somehow people are bold enough to buy the dip.

Second, the shorts end up stepping on their own feet. Near 76,000 there’s a buy-wall holding things up; shorts can’t smash it, so they can only buy back and admit defeat—pushing the price higher 😂

But everyone, don’t get carried away, okay?

ETF side is still seeing net outflows. The link between the US stock market and the crypto market is getting tighter and tighter. Next week’s FOMC is the real show.

So this time, the shorts got lifted out first. As for who gets lifted in the next round—it’s hard to say 🤫
#CPI数据来袭能否触发9月加息

What do you think? Drop your thoughts in the comments below 👇🏻

$BNB The likelihood of a rate hike in September in the United States is increasing!

Several Wall Street banks said that the August U.S. CPI report showed core CPI rose 0.3% month over month, beating expectations. Goldman Sachs, Citigroup, and TD Securities turned hawkish and expect the Federal Reserve to start raising rates beginning in September. After the data was released, the market’s pricing probability for a September rate hike surged from 72% the previous day to 87%. TD Securities took the most aggressive stance, forecasting that the next rate-hiking cycle will include three consecutive 25-basis-point hikes—in September, October, and January 2027. Citigroup expects a rate hike in September, after which interest rates will remain unchanged until June 2027, and then cut rates three times within the year. Goldman Sachs cited market expectations, saying the probability of a September rate hike is 90%, and noted that keeping rates unchanged could trigger a strong market reaction.