The cryptocurrency landscape took a nosedive today, with XRP and Bitcoin leading the descent amid a broader market slump. XRP slipped below its 200-day simple moving average, a threshold it hadn’t crossed since April 10, indicating an uptick in bearish momentum. Meanwhile, Bitcoin flirted with the $105,000 level, marking a 3% decline over the past 24 hours, as traders anxiously await the release of the U.S. core PCE data.
XRP’s Slippery Slope
XRP’s recent downturn—falling below $2.20 and recording a 4.6% loss in just a day—has traders on edge. This decline comes after a spurt of interest in XRP as a corporate treasury asset, a trend that seemingly did little to prop up its value. According to TradingView, this fall below the 200-day SMA is a significant technical indicator, suggesting further potential declines. Analysts are keenly observing how XRP will navigate this treacherous terrain, especially given its role as a payments-focused token that often mirrors broader economic sentiments. For more insights into XRP’s potential trajectory, see our recent coverage on how XRP traders predict new all-time highs as ETF approval odds rise to 85%.
Notably, the dip in XRP coincides with a broader sell-off in the crypto market. The sentiment has been further dampened by concerns over the U.S. Federal Reserve’s next moves on interest rates, as traders and investors keep their fingers on the pulse of inflation data.
Bitcoin’s Brief Breach
Bitcoin, the heavyweight in the crypto arena, didn’t escape the market’s tumult. It briefly dipped below $105,000 during European trading hours, extending overnight losses. SoSoValue reported a $358 million net outflow from 11 spot bitcoin ETFs on Thursday, marking the first outflow since May 13 and the largest single-day withdrawal since March 11. This outflow underscores the cautious stance many investors are adopting amid renewed fears of a trade war, which could rattle global economic stability. This aligns with recent stagflationary pressures, as detailed in our analysis of how Stagflationary Data Puts Pressure on Bitcoin, Stocks.
Traders are also eyeing the U.S. core PCE data, anticipated to shed light on inflation trends. A softer inflation reading might bolster hopes for a Federal Reserve rate cut, potentially injecting new life into Bitcoin and other crypto assets. “All eyes now turn to the Core PCE data due today, which could reignite bullish sentiment if inflation shows signs of easing,” noted Valentin Fournier, Lead Research Analyst at BRN, in an email.
Ripple Effects on Other Tokens
The ripple effect—no pun intended—on other digital assets was palpable. Ethereum, Solana, and Dogecoin all registered larger losses, while smaller-cap tokens like Optimism (OP), Arbitrum (ARB), Bonk (BONK), and Pepe (PEPE) plummeted by over 10%, as per Coingecko data. This broad-based decline highlights the interconnected nature of digital currencies, where shifts in sentiment can cascade through the market ecosystem.
Despite the current downturn, some analysts remain cautiously optimistic. The anticipated core PCE data, if favorable, could shift market dynamics. “Another good month for inflation could raise Fed rate cut bets, boding well for BTC and other assets,” Fournier adds, hinting at a potential silver lining.
The Road Ahead
As the crypto community holds its breath for the core PCE figures, questions about the market’s direction loom large. Will a favorable inflation report soothe jittery investors? Or could further economic hiccups extend the current bearish trend? While the answers remain uncertain, one thing is clear: the coming weeks will be pivotal for digital assets.
In the meantime, traders and investors will likely remain on high alert, navigating the choppy waters of a market that is anything but predictable. As always, the crypto world is in a state of flux—testing the resilience of those who choose to play in its volatile arena.
Source
This article is based on: XRP Falls Below 200-day Average, Bitcoin Dips to $105K as Traders Eye Core PCE
Further Reading
Deepen your understanding with these related articles:
- Crypto Daybook Americas: All Eyes on Jobs, Fed as Bitcoin Prepares for Breakout Rally
- Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow
- Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception (openai)
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
