CPI In Focus After $562M Liquidation : Will BTC Hold ?

Bitcoin Drops To $76.6K Following Hotter US Inflation Data

9h05 ▪4min read ▪ byLuc Jose A.
Getting informed▪Bitcoin (BTC)Summarize this article with:

After the release of US inflation data, crypto liquidations reached 562 million dollars. Bitcoin dropped to 76651 dollars, while long positions bore most of the losses.

In Brief

• BTC price slid to $76,651 following the announcement of US inflation data, causing 562 million dollars in liquidations over 24 hours.
• Long positions were wiped out to the tune of 484 million dollars, illustrating a market heavily positioned with buy orders.
• The PPI rose 5.4% year-over-year in August, driven by soaring energy and diesel costs (+24.1%).
• The odds of a 25 basis point rate hike now exceed 65-70% on prediction markets and futures contracts.
• Investor attention turns to the next Consumer Price Index (CPI) report, with key support for BTC between $76,500 and $77,000.

Bitcoin’s decline mainly hits long positions

Bitcoin was trading between 78,000 and 79,000 dollars before the release of the US Producer Price Index. This announcement quickly pushed its price below 77,000 dollars. BTC then recorded a daily low on Bitstamp at 76,651 dollars.

Afterward, the crypto rebounded. However, it showed a decline of over 2.5%, with a valuation close to 1.55 trillion dollars. This drop triggered the closure of multiple leveraged positions.

Liquidation breakdown reveals that bullish investors suffered the heaviest losses :

• The crypto market recorded 562 million dollars in liquidations over 24 hours ;
• Long positions accounted for about 484 million dollars ;
• Bitcoin had 112 million dollars of long positions liquidated ;
• Nearly 74 million dollars of long positions vanished in just four hours.

Short sellers on bitcoin lost nearly 8 million dollars. The ratio of long to short liquidations is thus about fourteen to one for this asset. Such an imbalance confirms that the market was mainly positioned for a rebound before the drop.

Liquidation can occur when the platform immediately closes a position that has become insufficiently collateralized. Thus, leverage amplifies losses triggered by a relatively limited price fluctuation.

PPI rises 5.4% year-over-year

This move followed the release of the Producer Price Index, or PPI. Such an indicator measures the progress of prices received by US producers. It can then signal future price pressures for consumers.

According to the US Bureau of Labor Statistics, the PPI increased by 0.4% in August compared to July. This monthly rise matched economists’ forecasts. It thus does not represent a surprise by itself, unlike what the immediate market reaction implies.

However, the annual rate rose to 5.4%, up from 4.8% in July. Additionally, prices increased by 1.1%, while services prices accelerated by 0.1%. Energy costs jumped 4.2%, notably driven by a 24.1% surge in diesel prices.

These on-chain data reinforce the risk of another Federal Reserve rate hike. Thus, Carl Weinberg, chief economist at High Frequency Economics, said :

This report reveals upcoming cost increases and will support members of the Committee who want to raise rates now.

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Odds of a rate hike increase

Just after the release, Polymarket and Kalshi bettors assigned a 63% probability to a 25 basis point hike. This estimate gained nine points. The CME FedWatch then showed nearly 67%.

Later, futures raised this probability to about 70%. A rate hike usually boosts bond yields and reduces the appeal of risky assets. It can also support the dollar, putting additional pressure on bitcoin.

The yield on the US ten-year Treasury bond also exceeded 4.90%. Moreover, Treasury bond purchases did not prevent this rise. The Kobeissi Letter noted on the social network X: “this confrontation between authorities and the bond market prepares for a very turbulent fourth quarter”.

BREAKING: The US 10Y Note Yield officially rises above 4.90% for the first time since November 2023, now up +95 basis points since the Iran War began.

This puts the 10Y Note Yield up another +10 basis points since the US Treasury said it was TRIPLING long-term buybacks to $6… https://t.co/Gt4T5kWJJy pic.twitter.com/xRSrXhBSFU

— The Kobeissi Letter (@KobeissiLetter) September 10, 2026

Now, the market watches the Consumer Price Index. This report could provide a second signal on inflation progression before the next Fed meeting.

A high figure would strengthen the rate hike scenario and keep bitcoin under pressure. Conversely, price slowdown would reduce these expectations. For now, BTC’s ability to defend the $76,500 to $77,000 zone remains the main technical indicator to monitor.

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Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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