Bitcoin surged past $65,000 on July 15, reaching an intraday peak of $65,518 after U.S. producer price index data showed an unexpected 0.3% month-over-month deflation. The price movement followed the previous day's consumer price index release and triggered over $209 million in short position liquidations across cryptocurrency markets. The inflation data releases caused Federal Reserve rate hike odds for the upcoming meeting to drop from over 40% earlier in the week to 12%. Bitcoin's market capitalization breached the $1.3 trillion mark during the rally, bringing gains since the beginning of the month to approximately 10%, though the cryptocurrency remained 3% below its June 16 value of nearly $67,000.
Bitcoin Reaches $65,518 Peak Following 0.3% PPI Deflation
The top cryptocurrency consolidated between $64,500 and $65,000 through Tuesday evening and early Wednesday before breaking out shortly after 8 a.m. EST. The sharp rally propelled bitcoin to an intraday peak of $65,518. The PPI's unexpected 0.3% month-over-month deflation caught analysts by surprise, many of whom had anticipated prices to hold flat. Bitcoin retraced to trade just above $64,800 as of 12:45 p.m. EST, securing a marginal 24-hour gain. The cryptocurrency was still 3% below its June 16 value of nearly $67,000.
Cryptocurrency Market Records $324 Million in Liquidations
Bitcoin's price fluctuations resulted in over $58 million in leveraged bets being wiped out, with short positions accounting for nearly 85% of the total. Overall, liquidations across the cryptocurrency market reached $324 million, with short bets accounting for $209 million of this total. The derivatives market saw the majority of liquidations concentrated in short positions as the price moved above $65,000.
Federal Reserve Rate Hike Odds Drop to 12%
The decline in both the consumer price index and producer price index caused the odds of the Federal Reserve raising interest rates at its upcoming meeting to plunge from just over 40% earlier in the week to 12%. The consumer price index release showed headline inflation slowing to 3.5% year-over-year against a 3.8% consensus, while core inflation cooled to 2.6% against the forecast 2.9%. The data covers the month of June. The Federal Open Market Committee meeting is scheduled for July 28 and 29.
Nansen Reports ETF Inflows and On-Chain Data Patterns on July 15
Nicolai Sondergaard, a research analyst at Nansen, noted that spot bitcoin and ether ETF inflows on July 15 showed that Tuesday's CPI print materially shifted the near-term macroeconomic outlook. The DXY was trading near 100.77, and the 10-year yield eased to 4.57% after briefly touching 4.61% pre-CPI. Nansen data showed exchange outflows holding up, meaning buyers were absorbing supply. Wallets that typically move first and largest in these setups had not shifted toward stablecoins in any meaningful way. The funding rate was running near zero. The MVRV sat at 1.205 with realized price at roughly $53,000 and the long-term holder cost basis around $49,900. West Texas Intermediate was up roughly 14.6% in five days.
FAQ
What caused Bitcoin to surpass $65,000 on July 15?
Bitcoin surged past $65,000 on July 15 following the release of U.S. producer price index data that showed an unexpected 0.3% month-over-month deflation. The price movement also followed the previous day's consumer price index release, and the combined inflation data caused Federal Reserve rate hike odds to drop from over 40% to 12%.
How much was liquidated in cryptocurrency short positions on July 15?
Liquidations across the cryptocurrency market reached $324 million on July 15, with short bets accounting for $209 million of this total. For bitcoin specifically, over $58 million in leveraged bets were wiped out, with short positions accounting for nearly 85% of that figure.
What did Nansen report about ETF inflows on July 15?
Nansen research analyst Nicolai Sondergaard reported that spot bitcoin and ether ETF inflows on July 15 demonstrated that Tuesday's consumer price index print materially shifted the near-term macroeconomic outlook. Nansen data showed exchange outflows holding up and wallets not shifting toward stablecoins in any meaningful way, with the DXY trading near 100.77 and the 10-year yield easing to 4.57%.
