Crypto Market Suffers Record-Breaking Loss as Inflation Data Surprises

The cryptocurrency market experienced a dramatic downturn on May 16, with a staggering loss of $90.3 billion in value within an hour. The main catalyst behind this decline was the release of US inflation data, which exceeded forecasts and crushed expectations for Federal Reserve rate cuts.

This unexpected development sent shockwaves through the crypto market, causing Bitcoin's price to plummet to $77,678. Other major altcoins, including Ethereum, XRP, Solana, and Dogecoin, also experienced significant declines, falling between 3.5% and 6% in value.

Additionally, institutional selling played a substantial role in the market's downturn. A total of $290 million was withdrawn from US spot Bitcoin ETFs, while significant amounts of Bitcoin were sold by miners. This triggered mass liquidations, wiping out $696 million in derivatives and pushing Bitcoin below key technical support.