Cooler US PPI Catches a $52 Million Bitcoin Bear Off Guard - BeInCrypto
US Producer Price Index data showing lower-than-expected inflation sent Bitcoin soaring within minutes, wiping out $39 million in short positions.
US Producer Price Index data released on November 13 showed producer prices rising less than expected in October, triggering an immediate Bitcoin price surge. The cryptocurrency jumped from about $69,246 to nearly $70,000 within five minutes of the data release, catching bearish traders completely off guard.
The move resulted in approximately $39 million in short liquidations within an hour, according to CoinGlass data. This came after a brutal 24-hour period where $1.42 billion in crypto positions were liquidated, with 83.4% affecting traders who had bet on gains.
Inflation Data Surprise
The Producer Price Index tracks what businesses pay for goods and services, often hinting at future consumer prices. October's data showed prices rising 6.5% over the year, below the 6.6% forecast. The monthly gain was 0.3%, under the expected 0.4%. Despite the lower-than-expected readings, inflation still did not cool significantly, with the annual rate rising from 6.3% in September and a core measure climbing 0.5% for the month.
Large Short Position at Risk
Tracking site Hyperbot revealed a trader on crypto exchange Hyperliquid opened a 750 BTC short position 50 minutes before the PPI data release, betting on a price drop. The entry averaged $69,008 with about $1.94 million of the trader's own funds and borrowed money covering the rest at up to 40 times leverage.
A trader opened a $52 MILLION Bitcoin short with 40x leverage just 50 minutes before the PPI data release. Is he expecting a massive dump?
The position's liquidation price is near $70,986, and Bitcoin came within about 1.1% of that level at its peak. The trader was already down about $208,000 before the data release. If the bet fails, closing it means buying back 750 BTC into a rising market.
Fed Meeting Looms
The next major market event comes at the Federal Reserve's December 8-9 meeting. Governor Christopher Waller has indicated a possible half-point rate hike could be tied to core consumer prices running at 0.3% or more. October's core reading hit exactly that threshold, according to ING, making the Fed's decision particularly significant for markets.
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