Bitcoin and Ethereum fell on Tuesday as fresh U.S. wholesale inflation data pointed to sticky costs, keeping pressure on risk assets. The Producer Price Index (PPI), a gauge of wholesale prices, rose 0.3% in September, with energy and food leading the gains, according to data cited by Bloomberg. Core PPI, which excludes food and energy, climbed 2.6% year over year, its smallest increase since July 2024 and slightly below forecasts.
Market snapshot
Bitcoin (BTC) traded near $87,000, down about 2% over the past day, while Ethereum (ETH) slipped 1.6% to $2,930. The total crypto market value stands around $3.1 trillion, off 1% in 24 hours. Trading volume reached $154 billion. Bitcoins market share is 56.5%, with Ethereum at 11.5%.
Moves were mixed across major altcoins: XRP dropped 4% to $2.18, Solana (SOL) was flat at $137, and BNB eased 2% to $856.
Winners and laggards
- Top risers: Kaspa (KAS) jumped 17%; Ethena (ENA) rose 11.6% to $0.284; Quant (QNT) gained 8.7% to $86.71.
- Top decliners: Zcash (ZEC) fell 15% to $495; Bitcoin Cash (BCH) slid 6.6% to $521; Rain (RAIN) dipped 5.1% to $0.007.
ETF money splits directions
Exchange-traded funds (ETFs) that hold crypto directly showed a split in investor flows. Spot Bitcoin ETFs recorded $151 million in outflows on Monday, while Ethereum ETFs took in more than $97 million. Among single-asset products, Solana ETFs drew nearly $58 million, and XRP funds added roughly $164 million.
Why this matters: ETFs are a simple way for big and small investors to get crypto exposure in a brokerage account. Outflows can signal profit-taking or caution, while inflows often point to dip-buying or a rotation into different coins.
Leverage got flushed
Roughly $318 million in crypto positions were liquidated in the last 24 hours, per Coinglass. Short positions led at about $163 million, with longs close behind at $142 million. Bitcoin saw the most forced unwinds at around $103 million, followed by Ethereum near $60 million. A smaller token, HYPE, registered over $40 million in liquidations.
Plain English: Liquidations happen when traders who borrow to bet on prices cant meet margin requirements and their positions are auto-closed. When many hit at once, prices can swing fast.
Macro signal: inflation cools, but not evenly
The 0.3% monthly rise in PPI suggests upstream prices are still climbing, but the slower 2.6% core reading hints that underlying pressures are easing. Services prices were little changed. Economists told Bloomberg the mix could keep the Federal Reserve leaning toward a rate cut in December if broader price measures continue to cool.
Why this matters: Lower interest rates tend to support risk assets like crypto by making borrowing cheaper and pushing investors to seek higher-return opportunities. But if energy-led inflation persists, the Fed may move more slowly.
Geopolitics keeps risk appetite in check
Traders also weighed headlines around talks related to the war in Ukraine. The United States, Ukraine, and Russia continue discussions over a potential peace plan, CNN reported. Ukraine has reportedly signaled openness to a U.S. proposal, though President Volodymyr Zelenskyy said more work is needed and could meet U.S. President Donald Trump as part of the process, per CNN. Russian officials warned they may reject any plan that strays too far from past frameworks.
Bottom line: Uncertainty around a major geopolitical conflict can curb risk-taking, even when inflation data looks somewhat friendly.
What this means for investors
- Near term chop: Mixed ETF flows and a wave of liquidations signal a market resetting leverage, which can keep price swings sharp.
- Macro matters: If inflation cools and the Fed cuts in December, the backdrop improves for crypto. Sticky energy costs would complicate that path.
- Rotation watch: Bitcoin outflows alongside Ethereum and XRP/SOL inflows suggest some investors are shifting exposure rather than exiting crypto entirely.
What to watch next
- Upcoming U.S. data: Any readings that confirm cooling inflation could firm up rate-cut odds.
- Fed communications: Hints about December policy will likely move both BTC and ETH.
- ETF flow trends: Sustained inflows into non-Bitcoin funds would underscore rotation themes.
- Headlines on Ukraine: Clear progress or setbacks in talks could sway broader risk sentiment.
The takeaway: Tuesdays dip looks driven by macro caution, repositioning in ETFs, and a cleanout of leverage. For now, traders are playing defense while waiting for clearer signals from inflation and geopolitics.