Bitcoin, Ether, XRP Force 2,633% Liquidation Imbalance Amid Sticky US Inflation Short Squeeze

Crypto shorts face a 2,633% liquidation imbalance as BTC, ETH, and XRP shrug off sticky inflation and 5.2% US Treasury yields.

Gamza Khanzadaev · 30 Sep 2026 · 5 min read

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Bitcoin, Ether, XRP Force 2,633% Liquidation Imbalance Amid Sticky US Inflation Short Squeeze

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Gamza Khanzadaev

Wed, 30/09/2026 – 15:41

Crypto shorts face a 2,633% liquidation imbalance as BTC, ETH, and XRP shrug off sticky inflation and 5.2% US Treasury yields.

Bitcoin, Ether, XRP Force 2,633% Liquidation Imbalance Amid Sticky US Inflation Short Squeeze

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The latest U.S. inflation data, which the market had been eagerly awaiting, brought an unexpected boost to cryptocurrency derivatives markets. The August report on the core personal consumption expenditures (PCE) index showed that price pressures in the U.S. economy remain persistent: prices for more than half of the components in the PCE basket are still rising faster than the target rate.

However, despite stubborn inflation and a tough macroeconomic backdrop, Bitcoin and the largest altcoins triggered a powerful wave of buying activity that completely overwhelmed sellers.

*Liquidation heatmap and total liquidations dashboard showing market metrics, Source:* *CoinGlass*

Even though prices for more than half of the components in the PCE basket are still rising faster than the target rate, short sellers instantly found themselves trapped. The market interpreted cooling inflation as a green light for risk assets, triggering a cascade of forced liquidations of leveraged positions.

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The main drivers of the rally, absorbing most of the sellers’ liquidity, were three key assets: Bitcoin, Ether, and XRP.

Bitcoin, which maintains a firm hold on nearly 59% of the entire crypto market, reached $83,825.17 at the peak of the move. Bitcoin short sellers accounted for more than $51.69 million in losses over 24 hours. The hardest hit came on the HTX exchange, where a single BTC-USDT position was forcibly liquidated for $6.91 million.

Ether, the second-largest cryptocurrency, contributed a substantial $16.39 million to total liquidations despite an intraday dip to $2,679.29. XRP then fell into the grip of the short squeeze: after settling at $1.4975, Ripple’s token accounted for a share of triggered stop orders alongside the most volatile altcoins.