Crypto Market Prints 1,810% Liquidation Imbalance Amid Largest Inflation Decline In 4 Years

Cover image via depositphotos.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. The latest US inflation report triggered an immediate short squeeze across the digital asset market. In June, the Consumer Price Index (CPI) unexpectedly fell by 0.4%, marking its steepest monthly decline since April 2020. On an annual basis, inflation slowed to 3.5%, while core inflation dropped to 2.6%. Advertisement Against this backdrop, the probability of a Federal Reserve rate hike collapsed to a symbolic 8%, while US stock market futures moved higher. On crypto exchanges, the release triggered an immediate cascade of liquidations among traders betting on further declines. 1,810% imbalance: How Ethereum absorbed the hardest hit According to CoinGlass , short liquidations surged to $134.90 million in the first hour alone, while long traders lost just $7.06 million. This created an abnormal 1,810% imbalance, with short sellers being forcibly closed out 19.1 times more than buyers. HOT Stories SBI Secures XRP Lending Infrastructure; 969 Million Shiba Inu (SHIB) on Exchanges Fuel 76% Spike; Wintermute Details 2 Key Bitcoin Recovery Catalysts - Morning Crypto Report Ethereum (ETH) Breakout Secured, XRP Uptrend Is Not Over Yet, Analyzing Bitcoin (BTC) Resistance Break Potential: Crypto Market Review The main surprise of this short squeeze was that Ethereum, rather than Bitcoin, absorbed the largest blow . In just one hour, ETH short sellers lost $56.71 million, while short liquidations in BTC futures were notably lower at $41.14 million. Advertisement Hourly liquidation heatmap, Source: CoinGlass The unusual skew toward Ethereum was also confirmed by the largest single liquidation of the past 24 hours. On Binance, the system forcibly closed an ETHUSDT position worth $6.37 million. Overall, the market liquidated 89,498 traders over the past day, with total losses reaching $413.37 million. You Might Also Like Tue, 07/14/2026 - 13:13 SBI Secures XRP Lending Infrastructure; 969 Million Shiba Inu (SHIB) on Exchanges Fuel 76% Spike; Wintermute Details 2 Key Bitcoin Recovery Catalysts - Morning Crypto Report By Gamza Khanzadaev Inflation falling below 4% opens the door for the Federal Reserve to begin cutting interest rates as early as this autumn. For the crypto market, this means a potential influx of liquidity, as digital assets are often the first to react to expectations of cheaper money in the United States. Advertisement The current wave of short liquidations has weakened the bears' ability to keep prices within the previous downward channel, establishing new medium-term support levels for BTC and ETH at $63,500 and $1,800, respectively. #Liquidation Imbalance #inflation