Crypto Carnage: $480M Wiped Out as PCE Data Triggers Market Meltdown

Crypto markets just got a brutal reality check—half a billion dollars evaporated in hours as economic data slammed risk assets.

The Trigger: Inflation Jitters Return

August's PCE readings spooked traders—turns out the Fed might actually keep rates higher for longer. Who could've predicted that?

Liquidation Cascade Hits Every Major Token

Long positions got demolished across BTC, ETH, and altcoins. Leverage works great until it doesn't—another lesson traders will promptly forget.

Market Structure Showing Stress Fractures

Funding rates flipped negative exchange-wide as perpetual swaps screamed panic. Open interest collapsed faster than a crypto influencer's credibility.

Traditional Finance Parasites Feast

Hedge funds piled into short ETFs while retail got rekt—the old Wall Street playbook looking suspiciously familiar. But hey, this time it's decentralized right?

Next Support Levels Looking Shaky

Key technical levels cracked like cheap encryption. If BTC doesn't hold $60K, we're testing depths that'll make even diamond hands sweat.

Remember: Macro data dictates crypto now—the 'uncorrelated asset' narrative died with your portfolio gains. Maybe diversify beyond magic internet money next cycle?

TLDR

• Crypto market faces $480M in long liquidations amid PCE data release.
• Bitcoin drops to $108K with fears of further declines.
• Ethereum XRP, and Solana experience deeper losses.
• Peter Schiff declares ‘Game Over’ for Trump administration’s economic strategy.
• Inflation fears intensify after PCE data shows persistent price increases.

The crypto market is facing a severe correction, with Bitcoin (BTC) slipping to $108,000. Altcoins like Ethereum (ETH), XRP, and Solana (SOL) are experiencing deeper declines. The sharp market downturn follows a surge in the US PCE data, which signals persistent inflationary pressure.

Bitcoin Faces Further Declines Amidst Market Correction

Bitcoin’s price has dropped to $108,456, extending its weekly losses to 6.5%. This decline follows the US PCE data, which showed inflation at 2.6%. As a result, market sentiment has soured, with many fearing a drop to $100,000 levels.

According to analyst Ali Martinez, Bitcoin’s recent price movement mirrors the 2021 chart pattern. Martinez pointed out that BTC must hold above $108,700 to avoid a deeper drop. A fall below this key level could trigger a 15% crash, potentially bringing Bitcoin down to $94,000.

Bitcoin’s performance has become increasingly sensitive to macroeconomic developments. Market analysts are now focused on the Federal Reserve’s stance on interest rate cuts. With inflationary risks still high, the Fed has little incentive to act aggressively on rate cuts.

Ethereum, XRP, and Solana Struggle Amid Market Correction

Ethereum has seen continued selling pressure despite ongoing institutional inflows. After last week’s optimism, the broader crypto market is now in a more cautious mood. This shift has led to significant losses for Ethereum, which is struggling to maintain support levels.

Ripple’s XRP is facing its own challenges, as it has dropped to $2.81 after losing key support at $3. Similarly, solana (SOL) is testing crucial support near the $200 mark. These declines reflect the broader market sentiment, as altcoins follow Bitcoin’s lead into correction.

The broader crypto market is feeling the pain, with liquidations escalating. According to Coinglass data, liquidations have surged to $589 million, with $480 million tied to long positions. The ongoing market volatility is making risk-on assets more unattractive, especially as inflationary pressures continue.

Schiff Warns Crypto Market as Inflation Risks Rise

Bitcoin critic Peter Schiff has weighed in on the situation, declaring that it’s “game over” for the TRUMP administration’s economic strategy. Schiff criticized former President Trump’s call for Federal Reserve rate cuts, arguing that such a move would undermine confidence in creditors. Lowering rates, according to Schiff, would risk deterring lenders and destabilizing the economy.

Schiff’s comments are rooted in concerns over the long-term impact of low-interest rates. He believes that creditors will hesitate to lend to the U.S. government if returns do not outpace inflation or dollar depreciation. The latest PCE data highlights persistent inflation risks, making it clear that rate cuts may not be feasible.

These macroeconomic shifts have amplified the ongoing market correction. With inflation showing no signs of easing, risk assets like bitcoin remain under pressure. The crypto market will continue to face uncertainty as the Federal Reserve’s next moves become increasingly critical for the global economy.