Bitcoin Breaks Below $71,000, Ethereum Falls Below $2,200! Nearly $300 Million in Liquidations Across the Network in 4 Hours, Inflation, Conflict, and Political Deadlock "Triple Kill" Crypto Market

Cryptocurrency markets experienced a bloodbath tonight. At 11 PM Taiwan time on the 18th, Bitcoin (BTC) rapidly broke through multiple support levels, losing the $71,000 mark; Ethereum (ETH) also plunged below $2,200. This “midnight flash crash” was driven by a combination of record-high inflation data, escalating Middle East conflicts, and political gridlock in Washington delaying crypto regulations.

(Background: Bitcoin briefly drops below $72,000, Ethereum dips below $2,200! Just before the FOMC, 4-hour liquidations total $175 million across the market.)

(Additional context: Israel announces “elimination” of Iran’s intelligence chief! Netanyahu authorizes indefinite targeted killings, causing Bitcoin to fall below $73,000 and Ethereum to lose the $2,300 support.)

Table of Contents

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• 1. Surging PPI Data: Fed Rate Cut Dreams Shattered
• 2. Middle East Conflict Escalates: Geopolitical Risks Surge
• 3. Political Deadlock: Crypto Bill “CLARITY” May Be Delayed
• Grim Data: 110,000 Liquidations, Whales Also Flounder

The crypto market faced strong resistance tonight (the 18th). Following the release of inflation data earlier, market sentiment collapsed further at 11 PM. Bitcoin (BTC) sharply declined, hitting lows around $70,800; Ethereum (ETH) also failed to hold the critical $2,200 support.

According to TokenView, the main reasons behind this intense market retracement are summarized into three core points:

1. Surging PPI Data: Fed Rate Cut Dreams Shattered

The U.S. Bureau of Labor Statistics (BLS) released the February Producer Price Index (PPI) at 8:30 PM, showing a monthly increase of 0.7% (vs. expected 0.3%), with core PPI year-over-year rising to 3.9%. This data delivers a harsh reality: inflation is more sticky than expected. With prices still uncontrolled, the likelihood of the Fed cutting rates in April or June has significantly diminished, causing risk assets to decline collectively.

2. Middle East Conflict Escalates: Geopolitical Risks Surge

Geopolitical tensions reached a peak tonight. Israel’s Defense Minister announced the successful “elimination” of Iran’s intelligence chief Esmail Khatib last night, with Prime Minister Netanyahu granting authorization for future targeted killings of Iranian officials “without additional approval.” As U.S.-Iran tensions escalate, crude oil prices surged past $100, and risk-off sentiment prompted capital to flow out of volatile assets like cryptocurrencies into traditional safe havens.

3. Political Deadlock: Crypto Legislation “CLARITY” May Be Delayed

In Washington, President Trump is pushing the “Save America Act” and has publicly threatened to refuse signing any other legislation until it passes. This has caused the scheduled Senate review of the “Crypto Market Structure Act” (the CLARITY bill) to stall. Analysts expect the bill may not reach committee before April, and the delay in regulatory clarity has shaken market confidence.

Grim Data: 110,000 Liquidations, Whales Also Flounder

According to CoinGlass, due to the market turbulence, nearly $300 million in total liquidations occurred in the past four hours, with long positions alone facing $274 million in liquidations, marking a brutal wipeout.