The crypto market is falling again, down about 2% and now near $2.27 trillion. Bitcoin, the flagship cryptocurrency, has erased its recent gains and is down to $65,253. Ethereum fell 4% in the last 24 hours.
Other altcoins, including XRP, Solana, Dogecoin, and Bitcoin Cash, also dropped between 5% and 18%.
So, what is pushing Bitcoin and Ethereum prices down today?
One major reason behind this drop is that the latest U.S. Producer Price Index (PPI) for January came in higher than expected.
January’s PPI came in at 2.9% year-over-year, above the expected 2.6%. Core PPI rose to 3.6%, also higher than forecasts. This suggests inflation remains strong, reducing the chances of an early interest rate cut by the Federal Reserve.
Higher rates usually make safer assets like bonds more attractive, pulling money away from riskier assets such as crypto.
The sharp move caused heavy liquidations. Over 96,000 traders were wiped out in the past 24 hours, with total liquidations reaching around $260 million.
Nearly 70% of these were long positions, meaning traders who were betting on higher prices were forced to close. Bitcoin alone saw around $90 million in liquidations, while Ethereum recorded about $86.5 million.
Bitcoin has erased all the gains it made on February 26, when it briefly moved close to $70,000. Now, the month is ending on a weak note, with Bitcoin down nearly 16.75% in February.
This marks the first time in Bitcoin’s history that both January and February have closed in the red, with losses of around 10% and 16.75%.
If Bitcoin falls below the $62,553 level, it could retest the recent four-week low near $60,000.
Interestingly, on the positive side, history shows that Bitcoin has often bottomed around 23 months after its previous all-time high. We are now at that same 23-month mark.
Meanwhile, Ethereum has also moved lower, falling about 5.7% in the past 24 hours after failing to break its recent four-week high.
Other major coins, including XRP, Solana, Dogecoin, and Bitcoin Cash, have recorded steeper losses between 5% and 18%. The broader market is clearly reacting to Bitcoin’s weakness.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Most people who throw out a $1,000 XRP price target do it anonymously on social…
USDC issuer Circle has seen its stock (NYSE: CRCL) tumble by 9.89% over the past…
US President Donald J. Trump is set to attend the “crypto and business conference” at…
US Treasury Secretary Scott Bessent is once more calling for the urgent expedition of the…
Layer-1 blockchains continue to compete for dominance, with user activity emerging as a key metric…
The Toncoin price has been plunging since the rejection that it faced in the first…
