Crypto Liquidations Hit $264M as Bitcoin Slides Below $78K Ahead of CPI Data

Bitcoin slipped below the $78,000 mark on Tuesday, reaching a daily low of $77,603 before a modest relief rally lifted it back to around $78,600. The price movement sparked significant market activity, resulting in $264 million of total crypto liquidations.

Price Action and Market Impact

The cryptocurrency opened the day above $79,000 after a weekend rally, but bearish pressure pushed it below $78,800 twice on Monday. By 9:50 a.m. EST on Tuesday, the price hit $77,603, the lowest level of the day. A short‑term bounce later in the morning restored the price to roughly $78,600.

Liquidations Overview

• Total crypto liquidations: $264 million
• Bitcoin‑specific liquidations: $79 million, with long positions accounting for about 90% of the losses
• Long position liquidations across the market: $187 million
• Short position liquidations across the market: $77 million

Upcoming Economic Data

Traders are awaiting key U.S. inflation figures from the Bureau of Labor Statistics. The August Producer Price Index (PPI) is scheduled for Thursday, followed by the Consumer Price Index (CPI) on Friday. These releases follow a stronger‑than‑expected non‑farm payroll report that highlighted labor market resilience.

Potential Market Implications

If inflation data shows higher than expected numbers or fails to ease, the Federal Reserve may consider another rate hike at its next policy meeting. Higher rates typically boost yields on risk‑free assets such as U.S. Treasuries, which can dampen demand for speculative assets like Bitcoin, potentially keeping prices range‑bound or pushing them lower.