Recent U.S. inflation data has significantly stalled Bitcoin's rally, causing volatility in the cryptocurrency market.
Impact of Inflation Data on the Market
On August 15, 2025, Bitcoin's rally sharply stalled following the unexpected U.S. inflation data. This event led to a steep sell-off in the cryptocurrency market.
The inflation data exceeded expectations, impacting investor sentiment. Bitcoin experienced a 7% drop, leading to the liquidation of over $930 million in leveraged positions, significantly changing market dynamics.
Statements from U.S. Treasury Secretary
U.S. Treasury Secretary Scott Bessent's statements added to the policy uncertainty. He remarked:
> "Market uncertainty attributed to conflicting statements on U.S. bitcoin reserve, increasing policy whiplash and risk aversion."
This also contributed to an open interest in derivatives reaching $32.5 billion.
Market Dynamics in Cryptocurrencies
Despite the overall downturn, some altcoins like AERO showed increased liquidity. Strategies on Avalanche and Starknet also showed increased transaction activity.
Historical data indicates similar occurrences in 2022 and 2023, with inflation heavily influencing asset pricing.
In conclusion, inflation data and policy uncertainty regarding bitcoin reserves have created significant changes in the cryptocurrency market, continuing to impact investor behavior.
