From Coinpedia · By Sahana Vibhute
Story HighlightsUS inflation hit 3.7% in September, exceeding forecasts and raising fresh concerns about Federal Reserve policy, sending crypto and global markets lower.
Crypto liquidations neared $959 million in 24 hours, with long positions dominating forced closures and adding pressure to Bitcoin, Ethereum and altcoins.
Bitcoin, the broader crypto market, and global markets faced selling pressure as US inflation came in hotter than expected. Concerns over the Fed’s interest rate outlook dragged BTC’s price near $80,200, while Ethereum and several major altcoins posted steeper losses as investors pulled back from risk-sensitive assets. The downturn also extended across global equities, with technology-heavy Asian markets suffering sharp declines following Wall Street’s losses.
Financial markets are now more unsettled as traders reevaluate the likelihood of interest rate decreases in light of the most recent inflation figures. As selling pressure increases, institutional flows and cryptocurrency liquidations continue to be important variables to monitor. As a result, investors are currently searching for indications of whether the decline will worsen or if markets will be able to pick up steam in the near future.
Global Markets Plunge Following Hotter US Inflation
Global markets came under serious pressure after the latest US inflation report. The September CPI index rose 3.7% YoY, up from 3.4% in August, above the expectations of 3.6%. Core inflation reached 2.6% annually compared to 2.4% in August, and Core CPI interest increased by 0.3%, above expectations of around 0.2%. Rising energy costs played a major role in the headline increase, with gasoline prices jumping 9.1% during September.
The hotter inflation reading put pressure on US equities during Wednesday’s session. The Nasdaq Composite fell 1.88%, while the S&P 500 declined 1.1%, marking a difficult session for Wall Street as technology & AI-based stocks led the losses. The selling intensified across Asian markets, with South Korea’s KOSPI plunging 8% and triggering a circuit breaker. Besides, Japan’s Nikkei 225 dropped around 5%. The focus now shifts to upcoming US economic data and the Fed’s commentary for clearer signals.
Crypto Market Sell-off Deepens as Bitcoin & Ethereum Slide
The sell-off has spread across the crypto market, with Bitcoin slipping below $81,000 and Ethereum falling even harder as investors turn cautious. Bitcoin dropped around 3% over 24 hours, while Ethereum lost nearly 6%, moving toward $2,367. Several major altcoins also traded in the red, but the losses were even sharper among some smaller tokens.
Zcash fell more than 12%, while NEAR Protocol and Cardano also faced heavy selling. The broad-based decline suggests that traders are cutting their exposure to crypto rather than simply moving away from one or two major coins. Things look more concerning when leveraged trading enters the picture. Nearly $960 million in crypto positions were liquidated over 24 hours, with long positions making up more than 90% of the total.