Crypto Liquidation Data from Coinglass
Bitcoin ($BTC) fell below $80,500 after hotter-than-expected US inflation data. The CPI data has intensified concerns about Federal Reserve policy and triggered a broader selloff across risk assets. Ethereum also dropped below $2,400. This has resulted in heavy liquidations as $957 million has been wiped from the crypto market. $79 million were short liquidation while rest all were long liquidations. These heavy liquidations have added pressure to the cryptocurrency market.
The downturn extended into Asian equities market too. Japan’s Nikkei 225 fell nearly 4% and South Korea’s KOSPI plunged around 8%. The sharp decline in South Korea triggered a temporary trading halt.
Bitcoin had been trading around $84,000 before the inflation report but subsequently declined toward the low $82,000s. Today morning, it has fallen below $80,500. Ethereum also extended its losses, dropping under $2,400.
Bitcoin’s technical outlook has also weakened following the decline. Analysts are watching its 50-day moving average as a potential support level. A recovery above this resistance could open the way toward $87,000. However, a sustained breakdown may expose the market to further losses toward $76,000.
Hot US CPI Data Fuels Fed Rate Hike Fears
The US Bureau of Labor Statistics reported on October 14 that September’s Consumer Price Index (CPI) rose 0.6% month-over-month and 3.7% year-over-year. In other words, the outcome has exceeded the forecast of 3.6%. This is considered bearish for risky assets such as BTC, atleast for short term.
Core CPI, which excludes food and energy prices, increased 0.3% monthly. Annual core inflation reached 2.6%. Gasoline prices climbed 9.1%, contributing significantly to the increase in headline inflation.
The stronger inflation figures prompted traders to reassess the Federal Reserve’s policy outlook. Market estimates for a rate hike at the Fed’s late-October meeting reportedly rose from around 22% to as high as 40%–50% in some assessments.
Asian Stocks Extend the Global Risk-Off Selloff
The pressure on cryptocurrencies coincided with steep losses across Asian stock markets. Investors reacted to persistent US inflation, rising yields, and weakness in technology-related shares.
Japan’s Nikkei 225 fell nearly 4% intraday, with semiconductor and artificial intelligence-linked stocks among the hardest hit. The decline reportedly erased approximately ¥35 trillion, equivalent to around $230 billion, in market value.
South Korea’s KOSPI dropped roughly 8%, prompting a circuit breaker that temporarily halted trading. Semiconductor companies, including Samsung Electronics and SK Hynix, faced pressure amid concerns about elevated valuations, higher interest rates, and uncertainty surrounding the technology sector.