Bitcoin and Ethereum experienced a sudden decline after hitting all-time highs, dropping over 4% intraday as traders reacted to US inflation data. This selloff triggered significant market liquidations exceeding $1 billion, leading to challenges in maintaining institutional confidence and increasing volatility concerns. The response highlights the crypto market’s sensitivity to macroeconomic indicators, with a notable impact on both Bitcoin and Ethereum. The sudden sell-off is attributed to unexpected US Producer Price Index inflation data, which caused a ripple effect across various crypto assets including XRP, Solana, and Dogecoin. This event has further intensified the debate regarding government investments in Bitcoin and the overall market outlook.