Hot PPI Data Slams Crypto Rally—But Greedy Buyers Keep Gobbling Supply

Crypto's bull run hit a speed bump after today's scorching PPI print—but don't tell that to the degens still FOMO-buying every dip.

Supply shock? More like demand shock.

Here's why traders are treating bad macro news like a Black Friday sale...

• PPI grenade: Inflation data drops, BTC wobbles—then bids swarm like Wall Street sharks smelling retail blood.

• Absorption mode: Every sell order gets vacuumed up faster than a VC's seed round in a bull market.

• Market psychology: 'Bad news = delayed Fed hikes' narrative doing heavy lifting (alongside Tether's printer).

Meanwhile, traditional finance guys are still waiting for that 'regulated ETF approval' to buy Bitcoin—right after they finish shorting it on Coinbase.

• July U.S. PPI came in at +0.9% MoM vs. +0.2% expected, the biggest monthly gain in 3 years, briefly pressuring risk assets. This caused BTC to fall from the $121K price region to $117.1K before stabilizing above $118.5K; ETH also pulled back from $4.8K toward $4.6K.
• The volatility was marked by Deribit posting a record $10.9 billion daily options volume; leverage in ETH and altcoins remained elevated at near-record OI levels.