JUST

Chair

Kevin

Polymarket

Reserve

Cooling U.S. inflation gave crypto markets a boost on July 14, after consumer prices <a href="https://www.bls.gov/news.release/cpi.nr0.htm" rel="noopener noreferrer nofollow">fell </a>more than economists expected, easing immediate pressure on the Federal Reserve to tighten monetary policy further.
The U.S. Consumer Price Index fell 0.4% in June, the <a href="https://www.cnbc.com/2026/07/14/consumer-price-index-inflation-report-june-2026.html" rel="noopener noreferrer nofollow">largest </a>monthly decline since April 2020, bringing annual inflation down to 3.5% from 4.2% in May. Economists surveyed by Dow Jones had expected a 0.2% monthly decline and a 3.8% annual inflation rate.
<a href="https://www.thestreet.com/crypto/markets/bitcoin-treasury-company-sells-48-of-holdings-to-repay-debt" rel="noopener noreferrer nofollow">Related: Bitcoin treasury company sells 48% of holdings to repay debt</a>
Core inflation, which excludes food and energy, was unchanged during the month, while lower energy and housing costs drove much of the decline, according to <a href="https://www.bls.gov/news.release/cpi.nr0.htm" rel="noopener noreferrer nofollow">data released</a> by the Bureau of Labor Statistics on July 14.
Federal Reserve Chair Kevin Warsh reiterated that policymakers remain focused on inflation despite the softer report.
<blockquote>
 "We have no tolerance for persistently elevated inflation," Warsh <a href="https://apnews.com/article/warsh-federal-reserve-inflation-4a1da547d64ae3d54fba29161b213601" rel="noopener noreferrer nofollow">said </a>in prepared testimony before the House Financial Services Committee. "We share a resolute commitment to restoring price stability."
</blockquote>
The report also shifted expectations in prediction markets.&nbsp;
<figure>
 <figcaption>
 Source: Polymarket
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At the time of writing, Polymarket traders <a href="https://polymarket.com/event/fed-decision-in-july-181" rel="noopener noreferrer nofollow">assigned </a>a 94% probability that the Federal Reserve would leave interest rates unchanged at its July 28-29 meeting. The market had attracted more than $59 million in trading volume.
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<h2 id="crypto-shorts-take-the-biggest-hit">Crypto shorts take the biggest hit</h2>
Crypto markets rallied immediately after the inflation data, triggering a wave of liquidations across leveraged bearish positions.
More than $112 million worth of crypto positions were liquidated during the first hour after the release, according to <a href="https://www.coinglass.com/liquidations" rel="noopener noreferrer nofollow">data </a>by CoinGlass.
Roughly $105.8 million came from short positions betting on lower crypto prices, compared with just $6.7 million in long liquidations.
<blockquote class="twitter-tweet">
 JUST IN: Bitcoin jumps 2.5% to $63,800, triggering over $112 million in crypto liquidations in the past hour, with $106 million wiped from short positions. bitcoin:native <a href="https://x.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a><a href="https://x.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Crypto</a><a href="https://x.com/hashtag/Liquidation?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Liquidation</a><a href="https://x.com/hashtag/Markets?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Markets</a><a href="https://t.co/P3ERkFxP9A" rel="noopener noreferrer nofollow">pic.twitter.com/P3ERkFxP9A</a>— Roundtable Network (@RTB_io) <a href="https://x.com/RTB_io/status/2077020277532500361?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 14, 2026</a>
</blockquote>
Bitcoin climbed about 2.5% to $63,800, while <a href="https://thestreet.com/crypto/ethereum" rel="noopener noreferrer nofollow">Ethereum</a> rose around 2.3% to about $1,780.
XRP also gained roughly 3% to trade near $1.10 at the time of writing.
Ahead of the inflation report, U.S. spot Bitcoin exchange-traded funds recorded about $424.7 million in net outflows on July 13 as per Farside <a href="https://farside.co.uk/btc/" rel="noopener noreferrer nofollow">data</a>, signaling a cautious stance among institutional investors.&nbsp;
The softer-than-expected CPI print, however, helped improve risk sentiment, with Bitcoin and Ethereum moving higher after the data was released. The inflation report also lifted traditional safe-haven assets.&nbsp;
Spot gold <a href="https://goldprice.org/" rel="noopener noreferrer nofollow">rose </a>about 1.9% to roughly $4,077 per ounce, while silver gained about 2.6% to around $59.16 per ounce.
<a href="https://www.thestreet.com/crypto/markets/us-government-moves-8-8m-of-bitcoin-that-trump-said-would-never-sell" rel="noopener noreferrer nofollow">Related: U.S. government moves $8.8M of Bitcoin that Trump said would never sell</a>

Cooling U.S. inflation sparks $112 million crypto wipeout

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