$BTC Crypto market plummets after strong data from the US and billion-dollar liquidations
The cryptocurrency market experienced a tense morning this Tuesday (19), with sharp declines in almost all digital assets. Bitcoin (BTC) fell to around $113,000, while Ethereum (ETH) dropped to about $4,180, in a drastic correction after weeks of historic highs.
📉 What happened
US economic data The Producer Price Index (PPI) rose 3.3% in June, above expectations of 3.0%. The result reinforced the perception that the Federal Reserve may keep interest rates high for a longer period, reducing appetite for risk assets like cryptos.
Mass liquidations In less than an hour, over $538 million in long positions were liquidated, according to market data. By the end of the day, the total amount exceeded $1 billion.
Fed and Treasury stance Investor attention turned to the Jackson Hole symposium, where the Fed may adopt a tougher tone on monetary policy. To make matters worse, the US Treasury denied plans to increase Bitcoin reserves, disappointing part of the market.
ETF outflows and whales selling Ethereum ETFs suffered net outflows of $196 million, including $87 million from BlackRock's fund (ETHA). Large institutional investors took the opportunity to realize profits, intensifying selling pressure.
🔎 Immediate impact
The correction caused panic among highly leveraged traders, generating a domino effect of liquidations. Market sentiment, which had been optimistic after BTC hit highs of $124,000, now oscillates between caution and fear of a more prolonged drop.
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This cryptocurrency has come to shake our hearts as bitcoiners because it is a cryptocurrency that will advance in the digital market. It is a Japanese currency with the founders of Sony and has come to shake the entire structure of the crypto market. Just remember that everything I say here is in an educational way, you can take this idea and convert it to a simpler and more didactic way because I am here to help you achieve your success because your success is my success
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