Why the Crypto Market Is Crushing: Inflation Shock Fuels Major Sell-Off

The cryptocurrency market is reeling from a shock sell-off, driven by unexpectedly high inflation data. The U.S. Bureau of Labor Statistics released its July 2025 Producer Price Index (PPI) report, revealing a surge in wholesale prices not seen since early 2022. This unexpected reading sent ripple effects across Wall Street and crypto markets alike, triggering a rapid sell-off impacting major cryptocurrencies like Bitcoin and Ethereum. The PPI jump was far hotter than expected, signaling persistent inflationary pressures that could force the Federal Reserve to maintain a more aggressive monetary policy stance.