Crypto traders had a rough Tuesday. Over $400 million in leveraged positions got wiped out — $300 million of that from longs — as fresh Iran strikes and a red-hot CPI forecast rattled markets. Bitcoin held the $61,000–$62,000 range through the chaos, and total market cap stayed at $2.2 trillion. But the pressure isn’t letting up: the May CPI print, due at 12:30 UTC, is expected to show 4.2% year-over-year inflation, the highest in more than three years, with energy spikes from the Iran conflict as the primary cause. Markets are pricing in a 70% chance the Fed hikes rates next week.
Liquidations Surpass $400 Million as Longs Get Squeezed
The escalation came after Trump launched what he called “proportional” strikes on Iran, while simultaneously hinting a deal could be “days away.” That whiplash was enough to trigger a cascade of liquidations across derivatives exchanges. The bulk hit longs — more than $300 million. It’s a reminder how fragile crypto leverage gets when geopolitics and macro collide. Japan’s hot PPI data added extra yen carry-trade pressure, nudging risk assets lower globally.
Bitmine Goes on an ETH Buying Spree
Not everyone ran for the exits. Bitmine, Tom Lee’s firm, scooped up 75,000 ETH in just 12 hours — about $123 million at current prices. That brings its total stash to 5.5 million ether, worth roughly $8.94 billion. The buying came during a dip, suggesting the firm sees the sell-off as a gift. Whether that conviction is shared by the broader market remains an open question.
Kraken Lands the World Cup
Kraken scored a branding win this week, becoming the official crypto exchange of the FIFA World Cup 2026. The deal puts the exchange front and center during the tournament’s global spotlight — a rare mainstream sponsorship in a sector still fighting for legitimacy. No financial terms were disclosed, but the partnership signals that major sports organizations are still willing to bet on crypto brands.
Tax Bills Hit a Wall in the House
Meanwhile, in Washington, the latest crypto tax bills ran into committee pushback. That could mean regulatory relief for US-based exchanges and holders, though nothing is finalized yet. The pushback is a break from the steady stream of tax-reporting rules that have defined the past couple of years. If the bills stall, the industry gets more breathing room before the next round of compliance deadlines.
What’s Next: CPI and the Fed
All eyes are on the CPI release at 12:30 UTC. A high number could push the Fed toward that rate hike and keep pressure on crypto. Anthony Scaramucci predicts a recovery won’t come until Q4 2026 or Q1 2027 — a sober timeline for anyone hoping for a quick bounce. For now, Bitcoin is holding its ground, but the next few hours could determine whether that support cracks.
