Was This the Crash We Warned About?
Key Highlights
• U.S. July PPI surges 0.9% MoM and 3.3% YoY, far above forecasts, killing rate cut euphoria.
• $1B+ wiped from crypto markets in hours as Bitcoin and Ethereum tumble.
Paradisers! In our recent MCP YouTube stream, we told you plainly (using Elliot wave theory): if Bitcoin couldn’t break through that key resistance, a brutal liquidation wave was coming. Well, it’s here, and it’s already claimed more than $1 billion in leveraged positions within hours.
The trigger? A shock U.S. Producer Price Index (PPI) report showing July prices up 0.9% month-on-month and 3.3% year-on-year, smashing forecasts and re-igniting inflation fears. This wasn’t just a bad reading, it was the kind of upside surprise that makes traders rethink every bullish rate-cut narrative they’ve been telling themselves since June.
Markets Go Risk-Off, Hard
Within minutes of the release, Bitcoin plunged to $117K while Ethereum slipped to $4,539. Both moves came alongside a 0.5% drop in U.S. stock index futures, a stronger dollar, and a five-basis-point jump in the 10-year Treasury yield to 4.25%. Core PPI and service sector costs were the culprits, pointing to stubborn underlying inflation that could keep the Fed’s foot on the brake longer than risk markets can stomach.
Fresh labor data didn’t help. Initial jobless claims for the week ending August 9 came in at 224,000, tighter than expected, and continuing claims held at 1.95 million. Meaning: the labor market isn’t cooling fast enough for the Fed to ease up. The odds of a September rate cut, which sat at a smug 100% before the report, are now at 96% and wobbling.
This Is Where We Go Next
This is exactly the scenario we broke down in our recent MCP stream, the resistance level Bitcoin had to clear, the telltale signs of liquidation pressure building, and the trigger that could set it off. The next market direction will be shaped in the coming hours, not days.
MCP News Private members will get the real-time read, chart breakdowns, and our team’s next tactical plays for just $3/month, about the price of airport coffee, except this one could actually save your portfolio.
Leverage doesn’t die quietly, it explodes. Today’s $1B liquidation wasn’t random; it was the market cashing in every reckless promise traders made to themselves at 2 AM
