Bitcoin Price Dumps to $117K – Inflation Data & $1B Liquidations Shake Crypto Market
Bitcoin (BTC) is currently trading at approximately $117,280, down nearly 0.7% from the previous close—marking another volatile day following a recent all-time high of over $124,000.
Earlier this week, BTC soared to around $124,400–$124,480, fueled by bullish sentiment and expectations of Federal Reserve rate cuts. But hotter-than-expected U.S. inflation data—especially in Producer Price Index (PPI) readings—triggered a sharp reversal. Bitcoin plunged violently, dipping below $118,000, at one point trading near $117,400.
Triggering Factors
1. Inflation Jitters Shake Market Confidence
U.S. PPI came in significantly above forecasts—raising inflation fears and undermining hopes for imminent Fed rate cuts. This swiftly curbed investor optimism, sending crypto and stock markets into a tailspin.
The result? Over $1 billion in crypto liquidations, as overleveraged positions were forced to unwind.
2. Policy Backlash Adds Fuel to the Fire
U.S. Treasury Secretary Scott Bessent made comments implying the government won’t buy more Bitcoin for the Strategic Reserve—then pivoted to clarify that budget-neutral acquisition strategies are being explored. Market interpretation of his statements added to short-term volatility.
3. Profit-Taking and a Market Rebound Reset
After reaching unprecedented peaks, institutions and traders took profits. Coupled with rising caution amid policy shifts, this contributed to the sell-off.
4. Beyond Bitcoin: Ripple Effects Across Crypto
Bitcoin’s tumble dragged broader markets with it—showing pullbacks in Ethereum, Solana, XRP, and other major altcoins.
Blog Style Breakdown
Highs and Heartbreaks: BTC’s Rollercoaster Week
Bitcoin soared to record highs (~$124K) this week, fueled by rate-cut optimism and institutional buying. Then inflation data triggered a rapid descent into the mid-$117K range—highlighting the fragility of gains during macroeconomic uncertainty.
Inflation Spooks Traders
Hotter-than-expected Producer Price Index numbers rattled markets that had priced in aggressive Fed easing. Risk assets like Bitcoin lost momentum quickly, prompting forced liquidations as leveraged traders exited positions.
Treasury Talk: Steadying or Stirring the Boat?
Mixed signals from Treasury Secretary Bessent on Bitcoin Reserve policy initially triggered selling, but later clarification reignited some buying interest. Either way, the back-and-forth kept volatility high.
Pressure Points: Liquidations and Profit-Taking
Over $1 billion in crypto positions were liquidated amid the sell-off—amplifying the downturn. Many investors also locked in profits after Bitcoin’s rally, further pushing prices lower.
What Comes Next?
- Stabilization ahead? If inflation data cools or the Fed signals easing, BTC could rebound.
- Resistance Levels: $119K–$120K may act as critical thresholds—falling below could spark more selling.
- Sentiment Shifts: Renewed investor confidence or further macro shocks will dictate short-term price action.
Final Thoughts
Today’s Bitcoin dip is a classic “sell the news” scenario—driven by inflation anxiety, policy ambiguity, and mass liquidations. The next moves will hinge on upcoming economic data and Federal Reserve commentary. One thing is certain: crypto volatility is here to stay.