Bitcoin Tanks On Hot PPI Inflation; Ethereum, Dogecoin, XRP Follow: Analyst Charts Course For BTC's Likely Moves

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Leading cryptocurrencies dived on Thursday after hotter-than-expected wholesale inflation tempered risk appetite.

Cryptocurrency Gains +/- Price (Recorded at 9:30 p.m. ET) Bitcoin (CRYPTO: BTC) -4.09% $118,590.95 Ethereum (CRYPTO: ETH) -2.85% $4,608.59 XRP (CRYPTO: XRP) -6.60% $3.09 Solana (CRYPTO: SOL) -5.02% $193.61 Dogecoin (CRYPTO: DOGE) -8.64% $0.2253

Crypto Liquidations Hit $1 Billion

Bitcoin plummeted below $118,000 after reaching a new high of $124,000 on Wednesday. The apex cryptocurrency pared losses overnight after reentering $118,000.

The asset took another blow after Treasury Secretary Scott Bessent said that the government will not be buying additional BTC for the strategic national reserve.

Ethereum took a U-turn after getting close to breaking its previous record. Major altcoins like XRP and Solana also felt the pinch.

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Over $1 billion was liquidated from the market over the last 24 hours, with bullish long traders losing over $873 million.

Both Bitcoin and Ethereum recorded a marked dip in open interest in the last 24 hours. Interestingly, Binance futures traders bought the dip, with more than 55% of the accounts positioned long.

The "Greed" sentiment tanked from 75 to 60 in the last 24 hours, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

Cryptocurrency Gains +/- Price (Recorded at 9:30 p.m. ET) KuCoin Token (KCS) +1.81% $13.06 UNUS SED LEO (LEO) +1.08% $9.36 Kaia (KAIA) +0.10% $0.1575

The global cryptocurrency market capitalization stood at $4.02 trillion, following a decline of 3.87% in the last 24 hours.

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Rate Cut Odds Fall Slightly

Stocks were a mixed bag on Thursday. The S&P 500 closed up 0.03% at 6,468.54, its third consecutive record close. The Dow Jones Industrial Average fell marginally by 0.02% to close at 44,911.26, while the tech-focused Nasdaq Composite finished down 0.01% at 21,710.67.

Stocks got pressured after the Producer Price Index rose faster-than-expected in July, reigniting concerns about the impact of President Donald Trump's tariff policies on inflation.

Traders now expect a 92% possibility that the central bank cuts interest rates by at its September meeting, down from 94% a day earlier, according to the CME FedWatch tool.

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Analyst Highlights Crucial Level For BTC

On-chain analytics firm CryptoQuant noted that the ETH/BTC price ratio crossed above its 365-day moving average, a level that historically "marked the start of bullish Ethereum cycles."

Widely followed cryptocurrency analyst and trader Michaël van de Poppe weighed in on the state of the market.

"Higher timeframe, I would assume we’ll go slightly lower [BTC], consolidate, ETH drops another 10% and then altcoins have 1-2 weeks of momentum," the analyst projected. "Crucial level to break at $121,000.

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This article Bitcoin Tanks On Hot PPI Inflation; Ethereum, Dogecoin, XRP Follow: Analyst Charts Course For BTC's Likely Moves originally appeared on Benzinga.com

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