Crypto Market Slides as Bitcoin and Ethereum Face Sell-Off

Bitcoin falls to $79,700 and Ethereum drops 4% weekly as $309M in liquidations hit the market following hot US PPI inflation data.

Market pressure has intensified following weeks of a powerful rally that pushed investor sentiment toward extreme optimism and fueled speculative bets in the derivatives markets.

At the time of writing, Bitcoin is trading at $79,700, marking a nearly 1% decline for the day. Meanwhile, Ethereum has lost almost 4% on a weekly basis, settling around $2,265.

Solana also remains under pressure, with its price sliding nearly 3% today, although the token continues to outperform the broader market over a longer timeframe.

Investors are actively taking profits following an aggressive surge in recent weeks. This upward momentum was previously supported by robust ETF inflows, institutional demand, and expectations for a more favorable regulatory environment in the U.S.

Leverage and Inflation Weigh on Risk Assets

According to data from CoinGlass, total liquidations over the last 24 hours reached $309.8 million, with approximately $241 million of those coming from long positions. This suggests that a significant portion of traders were positioned too aggressively for continued growth, leaving the market vulnerable at the first signs of weakness.

The largest liquidations were recorded in BTC and ETH, which traditionally account for the bulk of derivatives activity.

Fresh inflation data from the U.S. exerted further downward pressure on the crypto market. The Bureau of Labor Statistics released April figures for the Producer Price Index (PPI), which significantly exceeded analyst expectations. Monthly PPI jumped by 1.4%, marking the strongest monthly increase since March 2022. On an annual basis, the index reached 6%, far above the anticipated 4.9%.

Higher-than-expected producer inflation has intensified fears that the Federal Reserve may maintain high interest rates for a longer period, a scenario that typically weighs on risk assets.

The Crypto Fear and Greed Index has retreated to 47 points, down from levels above 60 earlier this month, signaling a sharp cooling of market optimism. Similarly, the Altcoin Season Index weakened from 100 to 47, revealing that investors are gradually shifting back to defensive positioning in Bitcoin rather than high-risk altcoins.

Investors Watch for Deeper Correction

Despite short-term headwinds, analysts note that institutional interest in digital assets remains resilient. Activity surrounding tokenized assets and stablecoin infrastructure continues to draw capital from the traditional financial sector.

Among the few large-cap assets showing relative strength are BNB and TRON. BNB recorded a gain of over 2% within the last 24 hours.

However, traders remain cautious due to the risk of a new wave of liquidations if Bitcoin fails to hold the $79,000 – $80,000 support zone. Historically, such periods often lead to increased volatility and deeper short-term corrections.