Bitcoin and Ethereum extended their losses on October 15 after hotter-than-expected U.S. inflation data unsettled financial markets, triggering nearly $1 billion in cryptocurrency liquidations as leveraged traders faced another wave of forced selling.

Bitcoin fell toward $80,000, trading around $81,000 after retreating from levels above $83,000 ahead of the inflation release. Ethereum suffered heavier losses, dropping more than 6% over 24 hours to approximately $2,365.

The sell-off followed the October 14 release of September's Consumer Price Index (CPI), which showed annual U.S. inflation accelerating to 3.7%, above both the 3.6% market forecast and August's 3.4% reading. Liquidation activity accelerated overnight, with Ethereum accounting for the largest losses among major cryptocurrencies.

U.S. Inflation Hits 3.7% as Gasoline Prices Surge

According to the Bureau of Labor Statistics, consumer prices rose 0.6% on a monthly basis, up from 0.4% in August. Gasoline prices jumped 9.1% during September, accounting for more than half of the overall monthly inflation increase. Energy costs climbed 5.2%, while gasoline inflation reached 34.2% on an annual basis.

Core CPI, which excludes food and energy, increased 0.3% monthly and 2.6% annually, exceeding the 2.5% consensus forecast.

The stronger inflation reading complicated expectations for Federal Reserve monetary policy, increasing speculation that interest rates could rise again before the end of 2026. With headline inflation now running well above the Federal Reserve's 2% target, each new data release carries added weight for officials calibrating the path of borrowing costs—and for markets positioned around those decisions. Cryptocurrency markets had already faced pressure from energy prices and inflation concerns earlier this year, when geopolitical tensions pushed oil prices higher.

Ethereum Leads $942 Million Liquidation Wave

The CoinGlass liquidation tracker recorded approximately $942.1 million in cryptocurrency derivatives liquidations over 24 hours in an early October 15 market snapshot. Long positions—bets that prices would rise—accounted for $863.3 million, representing more than 91% of the total, meaning the forced selling came overwhelmingly from traders positioned for further gains.

A particularly severe liquidation wave wiped out roughly $489.4 million within a single hour as falling prices forced highly leveraged positions to close.

Ethereum led individual assets with about $283.1 million in liquidations, including more than $261 million from bullish positions. Bitcoin followed with approximately $196 million, primarily affecting leveraged longs.

Binance accounted for roughly 53.7% of the recorded liquidations, with the largest individual position involving a $12.03 million BTC/USDT long closed at $80,208.96.

The concentration of long liquidations added selling pressure to an already declining market, as exchanges automatically closed positions that could no longer meet margin requirements—a cascade dynamic in which forced selling from leveraged traders compounds a broader market downturn.

Bitcoin Faces Renewed Pressure Before October Fed Decision

The inflation surprise has shifted attention toward the Federal Reserve's October 27–28 policy meeting, where officials will decide whether another rate increase is necessary. The Fed raised its benchmark interest rate in September to a range of 3.75% to 4%, and persistent inflation has strengthened expectations of further monetary tightening.

Higher borrowing costs and rising Treasury yields can weaken demand for leveraged cryptocurrency positions, particularly when markets are already facing substantial selling pressure.

Bitcoin previously rallied following softer-than-expected U.S. inflation data in April, when easing core price pressures supported risk appetite.

The next major U.S. inflation-related release is the September Producer Price Index on October 15, followed by the Federal Reserve's interest rate decision on October 28.

This article originally appeared on Crypto Adventure.