Hot U.S. Inflation Data Triggers Crypto Rout: BTC -5.7%, ETH -10.2%, $1B Exits Bitcoin ETFs!

A hotter-than-expected U.S. inflation print sent shockwaves through crypto markets, with Bitcoin dropping 5.7% and Ethereum sliding 10.2% as traders rushed for the exits. The move was sharp and broad-based, reflecting an immediate repricing of risk across digital assets.

The ETF channel amplified the damage: $1 billion in net outflows left Bitcoin ETFs in the session, signalling that institutional hands — not just retail — were reducing exposure. That scale of single-session ETF redemption is a meaningful reversal from the inflow streaks that defined recent weeks.

The macro read is straightforward: markets are now pricing in a possible Fed rate hike, or at minimum a prolonged pause that kills the rate-cut narrative crypto had been trading on. Until inflation data softens, the path of least resistance for risk assets remains lower.