Nearly USD 483 million in Bitcoin and Ethereum futures positions faced forced liquidation over 24 hours on Thursday, October 15, as rising U.S. inflation pressured cryptocurrency markets. Ethereum traders accounted for most closures, with USD 286 million in liquidations, compared with Bitcoin's USD 197 million.
The sell-off followed September's stronger-than-expected inflation report, which increased expectations of another Federal Reserve interest rate hike. Bitcoin traded near USD 81,000 after losing roughly 3.2% over 24 hours. Meanwhile, Ethereum dropped 6.4% to approximately USD 2,356, according to market figures reported during Asian trading hours.
The declines also affected other cryptocurrencies. XRP and Solana fell around 5%, while Dogecoin lost approximately 6%. As selling intensified, traders faced growing pressure across the crypto futures market.
Ethereum Liquidations Exceed Bitcoin as Futures Traders Exit
Ethereum accounted for nearly 60% of the combined Bitcoin and Ethereum liquidations despite having a smaller futures market. According to CoinGlass figures, outstanding Ethereum futures contracts totaled approximately USD 30 billion. In comparison, Bitcoin's open interest stood near USD 52 billion.
The figures show that Ethereum experienced heavier forced closures relative to its outstanding contracts. Its sharper price decline also contributed to the larger liquidation total.
Liquidations occur when leveraged traders lack sufficient collateral to maintain their positions. Exchanges then close those contracts automatically to prevent further losses. For example, a trader using USD 1,000 to control a USD 10,000 position could face liquidation after a relatively small adverse price movement.
Importantly, liquidation figures represent the notional value of closed positions rather than the actual cash traders lost. Meanwhile, Solana futures recorded approximately USD 31 million in liquidations as SOL declined 5.5%. Zcash contracts registered nearly USD 19 million, while ZEC fell around 13%.
These forced closures can increase selling pressure, especially when falling prices trigger additional liquidations across leveraged positions.
U.S. CPI Inflation Climbs to 3.7% as Energy Costs Rise
The cryptocurrency downturn followed Wednesday's U.S. Consumer Price Index report, which showed annual inflation accelerating to 3.7% in September. The reading exceeded economists' 3.6% forecast and August's 3.4% increase. Monthly headline inflation reached 0.6%, matching market expectations.
Meanwhile, core inflation, which excludes food and energy, rose 0.3% monthly against a 0.2% forecast. Annual core inflation also increased to 2.6% from 2.4%. According to the Bureau of Labor Statistics, gasoline prices climbed 9.1% during September. The increase accounted for more than half of the monthly headline inflation rise.
The broader energy index gained 5.2%, reflecting pressure from the ongoing U.S.-Iran conflict. Price increases also reached other sectors. Shelter costs rose 0.4%, while used vehicle prices increased 0.7%. Recreation, education, airline fares, and medical services also recorded increases.
Read More: Bitcoin at USD 83,791, Ethereum at USD 2,553, Zcash Surges 10.1%
Federal Reserve Rate Hike Expectations Pressure Bitcoin
Following the inflation report, investors increased expectations that the Federal Reserve could raise interest rates again during its October meeting.
Kalshi's prediction market showed the probability of a 25-basis-point increase climbing to 55% from 21%, according to the supplied market snapshot. The shift followed September's 25-basis-point rate increase, which brought the federal funds target range to 3.75%–4%.
Meanwhile, the benchmark 10-year Treasury yield rose approximately 7 to 9 basis points during Wednesday's session as bond markets reacted. Can-Luca Köymen, an investment strategist at Sygnum Bank, said the stronger core inflation reading reopened the possibility of another October increase.
Nevertheless, Sygnum Bank still expects the Federal Reserve to keep rates unchanged. The central question remains: Will persistent inflation push the Federal Reserve toward another rate hike and extend cryptocurrency market losses?
The central bank faces another challenge because the next Personal Consumption Expenditures inflation report arrives after its October 27–28 policy meeting.
For Bitcoin, higher Treasury yields could increase demand for interest-bearing assets. At the same time, a stronger dollar could tighten financial conditions and reduce demand for cryptocurrencies.
Conclusion
Bitcoin and Ethereum liquidations reached USD 483 million as stronger U.S. inflation data triggered a broader cryptocurrency sell-off. Ethereum accounted for USD 286 million in forced closures, while Bitcoin recorded USD 197 million. With annual inflation reaching 3.7%, Federal Reserve policy expectations and Treasury yields remain key factors affecting cryptocurrency markets.