Crypto markets fell sharply after a hotter-than-expected US PPI print triggered widespread liquidations and a swift risk-off move across tokens. Traders saw about $1.1 billion in liquidations as leveraged positions were forced to close, amplifying the downturn. Altcoins bore the brunt of the sell-off, underperforming Bitcoin and Ethereum.
Multiple headlines converged to deepen selling pressure. Senator Lummis renewed her push for the BITCOIN Act, and analytics firm Arkham reported that the US government holds roughly $24 billion in crypto assets. Officials signaled a preference for budget-neutral Bitcoin accumulation — a posture that could influence how government-held coins are managed.
Ethereum-specific flows are notable: roughly $3.2 billion of ETH is queued to exit staking, which could increase sell-side supply if withdrawals ramp up. Speculative activity persisted in pockets — HYPE approached $50 as trading volume hit all-time highs — but those gains did little to offset broad weakness.
Corporate and institutional signals were mixed. Google reportedly acquired an 8% stake in Bitcoin miner TeraWulf, while Citi is exploring crypto custody and payment services — a potential sign of gradual institutional adoption. Abu Dhabi’s sovereign wealth fund is said to own about $534 million in a BTC ETF. Startup KindlyMD aims to raise $540 million to buy Bitcoin, and American Bitcoin is exploring listings in Asian markets.
Regulatory and exchange developments added uncertainty: the SEC delayed decisions on Bitwise and 21Shares’ Solana ETFs, Hong Kong tightened custody requirements for exchanges, and the US sanctioned Russian exchange Garantex. UK official Atkins is scheduled to discuss a government initiative dubbed “Project Crypto” today. Geopolitical headlines, including a planned Trump–Putin meeting, layered extra uncertainty onto market sentiment.
What to watch: expect continued volatility around macro prints, large staking exits and headline-driven regulatory moves. Market participants should factor in liquidity and position risk — sudden liquidations and concentrated sell pressure can move prices sharply.
Source: Decrypt. Read the original coverage for full details.