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The crypto market lost nearly $90.3 billion in value in a single hour on May 16, pushing Bitcoin to $77,678 and triggering mass liquidations across the board.<\/p>\n
\n Summary<\/span>\n <\/p>\n <\/p>\n The crypto market shed<\/a> $90.3 billion in market cap in under an hour on May 16, with total valuation dropping 3.37% to around $2.59 trillion. Bitcoin (BTC<\/a>) fell to $77,678 while Ethereum (ETH<\/a>), XRP (XRP<\/a>), Solana (SOL<\/a>), and Dogecoin (DOGE<\/a>) each posted losses between 3.5% and 6%.<\/p>\n The sell-off was not crypto-specific. It was driven by a macro repricing event that spilled across global risk assets.<\/p>\n New U.S. PPI data released this week came in roughly 6% above analyst forecasts, the highest reading since December 2022, according to official data. April CPI had already printed at 3.8%. Together, the back-to-back inflation prints effectively ended near-term hopes for Federal Reserve rate cuts, with CME FedWatch showing<\/a> more than 44% probability of a rate hike by December. Traders sold risky assets fast.<\/p>\n Bitcoin has recently tracked the iShares Russell 2000 ETF (IWM), which follows small-cap U.S. stocks that are highly sensitive to rate expectations. As small-caps fell sharply on the inflation data, Bitcoin followed without delay.<\/p>\n <\/p>\n U.S. spot Bitcoin ETFs recorded<\/a> $290 million in outflows on the day, ending a six-week inflow streak. BlackRock\u2019s IBIT led withdrawals with roughly $136 million in redemptions. Total Bitcoin ETF outflows over the past week reached approximately $1.15 billion, according to SoSoValue data.<\/p>\n Analyst Ali Martinez posted<\/a> on X that Bitcoin miners sold close to 800 BTC worth roughly $64 million over the four days prior, adding further supply pressure at exactly the wrong moment. \u201cThis increase in selling pressure could soon impact price action,\u201d Martinez warned.<\/p>\n The combination of macro-driven selling and institutional redemptions removed two major demand layers simultaneously, leaving the market exposed to leveraged long positions built during the recent inflow streak.<\/p>\n Once spot prices began falling, the derivatives market amplified the move. According to CoinGlass<\/a> data, nearly 154,000 traders were liquidated over 24 hours, wiping out roughly $696 million from the derivatives market. Bitcoin liquidations alone surged 125% to over $235 million. Total crypto derivatives open interest fell more than 25% as traders rapidly exited leveraged positions.<\/p>\n Crypto trader Ted Pillows warned<\/a> on X that Bitcoin has broken below a major multi-month ascending channel on the daily timeframe, with two consecutive red candles confirming the breakdown. \u201cIf BTC loses the $78,000 level here, it could drop quickly to $74,000\u201375,000,\u201d he said.<\/p>\n Analysts say the technical break, if sustained, opens the door to a deeper correction, with the $70,000\u2013$68,000 region cited as the next meaningful downside target.<\/p>\n Altcoins took heavier losses than Bitcoin. XRP, Solana, BNB, Hyperliquid, Zcash, Dogecoin, Chainlink, and Cardano all posted<\/a> steep declines as market sentiment shifted decisively risk-off, consistent with the broader pattern seen each time macro data has turned hawkish this year.<\/p>\n <\/p><\/div>\n\n\n
Institutional selling compounded the macro hit<\/h2>\n
Liquidation cascade accelerated the decline<\/strong><\/h2>\n