Dogecoin dropped 5% on September 10, the biggest loss among the major coins. Bitcoin held the $78,000 level on most feeds before slipping below $77,000 as traders reacted to fresh inflation numbers out of Washington.
The selloff started with a government report. US producer prices, tracked by the PPI index, came in hotter than expected. That is the measure of what businesses pay for goods before they reach consumers, and when it jumps, traders expect the Federal Reserve to fight inflation with higher interest rates rather than cuts.
**Higher rates hit risk assets first**
Betting markets now put much higher odds on a Fed hike, according to U.Today's coverage of the move. That repricing sent the 30-year US Treasury bond yield to its highest level in 19 years, as Cointelegraph reported. When safe government bonds pay that much, money that might sit in bitcoin or dogecoin has a real alternative.
The pain showed up fast in leveraged positions. Bitcoin.com News reported a $562 million liquidation surge across the crypto market after the PPI release. Liquidation is what happens when a trader borrows to increase a bet and the exchange forcibly closes the position because the price
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