- Crypto market lost 5% in value after softer-than-expected PPI data and rising Middle East tensions.
- BTC and ETH fell over 2.5%, with $326M in liquidations led by ETH and BTC futures.
- Analysts say the dip is a macro-driven, healthy correction—not a major collapse.
The broader cryptocurrency market slipped into the red on Thursday following the release of the latest U.S. Producer Price Index (PPI) report, which hinted at cooling wholesale inflation. Bitcoin dropped 2.4% to $107,100, while Ethereum shed 5% to trade around $2,724. Other major altcoins like XRP and Solana declined by 4% and 6%, respectively.
Market Cap and Liquidations Reflect Bearish Sentiment
The total crypto market capitalization fell 5% to $3.49 trillion over the last 24 hours. According to CoinGlass, over $326 million in leveraged positions were liquidated, with Ethereum contributing $90 million and Bitcoin $72 million to the total. Despite the pullback, U.S.-listed spot Bitcoin ETFs saw $165 million in inflows on Wednesday, while ETH spot ETFs recorded higher interest with $240 million in inflows.
PPI Report Beats Forecasts, Influences Market Reaction
According to the U.S. Bureau of Labor Statistics, May’s PPI rose just 0.1%, coming in below the forecasted 0.3%. On an annual basis, wholesale inflation climbed 2.6%, slightly up from April’s 2.5%. Core PPI was also soft, increasing just 0.1% monthly, with the yearly rate declining to 3.0% from 3.2%. The subdued inflation data followed a similarly cooler CPI reading, offering temporary relief before markets turned lower.
Analysts Weigh In: Risk-Off, Not Collapse
Ryan Grace, head of digital assets at TastyTrade, said the dip reflects broader risk aversion driven by macro uncertainty and geopolitical tensions. “Bitcoin and Ethereum are down over 2.5%, mirroring declines in tech and growth stocks,” he noted. Seraph CEO Tobin Kuo added that although inflation concerns are easing, expectations around interest rate cuts remain unchanged.
Ben Kurland of DYOR emphasized that this isn’t a panic-driven sell-off. “It’s a healthy reminder that macro still matters, and the path to $120K isn’t going to be a straight line,” he said, highlighting leverage resets and long-term holder resilience.
