Crypto Market Sees $130M Liquidation in One Hour Amid Inflation Fears

The crypto derivatives market faced a sharp downturn on September 10, resulting in approximately $129 million in liquidations across major exchanges within a single hour, as reported by Coinglass.

Long traders bore the brunt of this event, with $122 million of the total liquidated positions coming from long positions, while short sellers experienced losses of about $7.3 million. Ethereum was hit the hardest, with around $49 million in liquidations, followed by Bitcoin at approximately $35 million.

The broader market also reflected this pressure, with total crypto market capitalization dropping about 1.8% to $2.71 trillion. This liquidation wave was triggered by unexpected inflation data, specifically a rise in the US Producer Price Index, which shifted market sentiment towards risk aversion.

Additionally, spot Bitcoin ETF outflows exceeded $120 million during the same session, compounding the market's struggles. The disproportionate liquidations between long and short positions indicate that traders were carrying excessive bullish leverage leading into this volatile period.