A sharp upside surprise in U.S. producer price inflation triggered a $420 million wipeout in crypto markets on Wednesday, exposing lingering vulnerabilities in market leverage during macroeconomic data shocks.
What Happened: The U.S. July Producer Price Index rose 3.3% year-on-year, exceeding forecasts of 2.5% and marking its highest level since February. On a monthly basis, prices jumped 0.9%, the largest increase since June 2022.
