Important Highlights
- More than $ 1 billion cryptocurrency trades were settled in a single day.
- Aguila Trader, an Ethereum whale, loses an astounding $83 million.
- Inflation data sparks panic, sending crypto markets tumbling
Crypto Market Crash? Inflation Data Shakes Things Up
So, was it really a crypto market crash? Well, yeah. On August 14, it all went down. A single day saw the liquidation of $1 billion in leveraged bitcoin assets, which were instantly wiped out.
What caused this sudden mayhem? It was a report of the American manufacturer Price Index (PPI), which was much worse than expected. Wholesale prices for PPI increased by 0.9% in July and by 3.3% year over year, which is the largest increase in three years.
Naturally, it fears inflation, and people start coming out. If inflation increases, the Federal Reserve may not soon cut interest rates. That uncertainty sent waves of nervousness through the market, and the crypto market was not immune.
Crypto Market Crash? Ethereum Gets Hit Hardest
Now, if you’re asking, “Crypto market crash?”, The one that was most affected, though, was Ethereum (ETH). In fact, ETH led the pack when it came to liquidations, with $272.29 million in long positions being wiped out and $74.17 millionfrom short positions.
Bitcoin (BTC) wasn’t far behind with $164.64 million in long liquidations. Many traders had been super optimistic, expecting the market to continue its climb, especially after the recent cryptoboom that nearly hit the $4.3 trillion market cap.
But when inflation worries started to spike, everything came crashing down. Crypto market crash? Definitely. What happened here? Well, most traders had bet big on the market continuing its upward trend. But as we all know, things can change fast in crypto, and it’s often the unexpected that flips the script.
Whale Trader Aguila Faces Huge Losses: $83M Gone in One Shot
But what about the big players? Well, one ETH whale in particular took a massive hit: Aguila Trader. According to Lookonchain, this trader had 18,323 ETH liquidated in one go, which is a cool $83.56 million. Yeah, that’s right—$83 million, gone.
Aguila wasn’t exactly in the clear before this though. The trader had already lost $37 million earlier. After this huge liquidation, Aguila was reportedly left with just $330,000 in the account—basically a fraction of what it once was.
It gets worse: another source claims Aguila had also suffered $200 million in losses just a week earlier after shorting ETH with 15x leverage. If you’re wondering why leverage can be so dangerous, this is why. It multiplies both your gains and losses.
What Happens Next After the Crypto Market Crash?
So, after the crypto market crash? What’s next? Well, it’s hard to say for sure, but some people think this might be a good thing—a necessary correction after the massive gains. Others, though, are a little more nervous.
With inflation still in the air and the Fed likely to hold rates steady, it could be a while before the market stabilizes. Here’s the kicker though: leverage is still a huge risk in the crypto world.
Certainly, it can increase your profits if you are on the right side of business. But when the market flips, it can wipe you out faster than you can say “liquidation.”
So, as always in crypto, risk management is key. It’s easy to get caught up in the hype, but this recent crash shows that things can go south real quick.
