- XRP’s price declined 10% on Thursday.
- An unexpected PPI result triggered a price pullback for XRP.
- Bitcoin and Ethereum also experienced pullbacks following the July PPI release.
XRP experienced a sharp decline on Thursday, dropping over 10% after the release of the July Producer Price Index (PPI) in the US. The cryptocurrency reversed from what seemed to be a bullish trend, lost its early daily gains, and dropped from $3.35 to retest the $3 support, according to data from TradingView.
The US July PPI dampened rate-cut expectations
The released data reflected a 3.7% inflation, raising concerns about the Federal Reserve’s potential to cut interest rates. For context, interest rate cuts typically trigger a bullish sentiment in the crypto market and other risk assets. Hence, signals of not realizing such an expectation intensified bearish sentiment among crypto investors, leading to Thursday’s decline after a promising beginning to the trading day.
Bitcoin and Ethereum also experienced pullbacks after the release of the US PPI. TradingView’s data shows that Bitcoin dropped by nearly 6% after reaching a new all-time high at $124,533. At the same time, Ethereum, the largest altcoin by market capitalization, recorded a 6.82% decline following the release of the PPI figure.
Related: XRP (XRP) Price Prediction for August 15
It is worth noting that most crypto investors have been expecting the US Federal Reserve to cut interest rates, considering the prevailing economic situation. Notably, XRP and other top cryptocurrencies have experienced significant rallies amid expectations that the Fed will soon cut interest rates.
The tariff effect is just beginning
Despite the immediate pullback after the release of PPI data, crypto analysts foresee imminent price increases soon. Such beliefs stem from the potential inflationary effects of tariffs, which are still beginning to spread throughout the economy, as indicated by the July PPI. According to the Federal Reserve’s report, the July PPI 3.7% surpassed the 3% threshold that most economists recommend.
According to TradingView’s data, XRP traded for $3.12 at the time of writing, indicating a slight rebound from Thursday’s decline. The crypto token’s supporters consider the pullback temporary, as they expect the digital asset’s price to rise and pursue its long-term target of a new all-time high.
Related: XRP Rally Is in Its “Final Stage,” Warns Veteran Trader with an $8-$13 Target
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