- Crypto market falls 3.49% in 24 hours after hitting recent highs.
- XRP leads notable declines, dropping 6.38% to $3.10.
- U.S. PPI data sparks sell-off, reducing chances of September Fed rate cuts.
- Altcoin Season Index shows Bitcoin still dominant at 44/100.
- Market awaits August 22 FOMC meeting for rate policy guidance.
Crypto Market Pulls Back as Inflation Data Sparks Sell-Off
The cryptocurrency market faced a sharp pullback in the last 24 hours, with total market capitalization dipping 3.49% to $4.03 trillion. This comes after a strong rally where Bitcoin (BTC) surged past $124,000, setting new highs.
The Altcoin Season Index currently stands at 44/100, signaling that while Bitcoin remains dominant, altcoins are gradually gaining strength. However, the latest macroeconomic data from the U.S. has triggered a wave of selling pressure.
Bitcoin Leads the Decline but Holds Key Support
Bitcoin (BTC) has dropped 3.72% over the past day, now trading at $118,895. Despite the pullback, BTC remains above critical support levels, suggesting this may be a healthy cooldown after overbought conditions.
Also Read: Bitcoin Price Analysis: Can BTC Recover After Q1 2025’s Sharp Decline?
Ethereum (ETH) fell 2.57% to $4,635, giving back part of its 19% weekly gain. Solana (SOL) saw a steeper 4.55% decline to $193.87, as traders locked in profits after recent double-digit growth. Cardano (ADA) also slid 3.27% to $0.9288, struggling to reclaim the $1 level.
Dogecoin and XRP Face Steeper Losses
Among the top 10 cryptocurrencies, Dogecoin (DOGE) saw one of the largest declines, falling 8.72% to $0.2273. XRP wasn’t far behind, shedding 6.38% to $3.10, erasing much of its recent gains.
What Triggered the Market Decline?
The primary catalyst was the release of July’s core Producer Price Index (PPI), which came in at 0.9%, surpassing expectations. This higher inflation reading reduces the likelihood of the Federal Reserve cutting interest rates in September—a move crypto traders had partially priced in.
The stronger-than-expected PPI sparked a risk-off sentiment across markets, leading to declines in both equities and cryptocurrencies. Investors are now turning their attention to the August 22 FOMC meeting, where Fed minutes will be released and officials are expected to provide fresh guidance on September’s policy decision.
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