Bitcoin, Ethereum, and XRP Slip Sharply Amid Inflation Shock

Major cryptocurrencies including Bitcoin, Ethereum, and XRP fell significantly after the latest U.S. inflation data stoked concern among investors. Month-over-month core PCE (Personal Consumption Expenditures) rose by 0.3%, while the annual figure reached 2.8%, exceeding expectations and rattling risk markets.

Bitcoin dipped around 0.1% to approximately $118,328, while Ethereum fell roughly 0.75% to $3,815.08. XRP also declined, though reports varied on its exact level. The move came as investors digested the higher-than-expected inflation reading, triggering broad crypto weakness.

That drop followed cautious sentiment ahead of two major anticipated events:

• The U.S. Federal Reserve’s upcoming decision on interest rates, expected to hold steady;
• A White House crypto policy report, part of an executive order directed at defining U.S. digital asset strategy.

In the lead-up, Bitcoin had weakened beneath resistance near $120,000, while Ethereum and XRP were testing support zones, showing greater downside sensitivity relative to Bitcoin’s relative stability.

Market Themes Driving the Movement

Tariff pressure and macro risk: Soon after the PCE report, new U.S. tariffs were announced, including a 10% global baseline rate and up to 35% on Canadian imports. That sparked investor jitters and widespread profit-taking. As a result, Bitcoin dropped about 3.2% in a 24-hour span to $114,832. Ethereum lost 2.5%, XRP 6.1%, and Solana plunged 9.5%—highlighting the heightened sensitivity of risk assets to policy shocks.

Institutional flows remain moderate: Spot ETF inflows for Bitcoin and Ethereum continued but at modest levels—roughly $47 million into Bitcoin ETFs and $5.8 million into Ethereum as of late July.

Policy uncertainty persists: The crypto policy report from the White House skirted specifics on whether the government will actively buy Bitcoin under its so-called Strategic Bitcoin Reserve, disappointing some market participants seeking clarity.

Technical Outlook and Risks

Bitcoin remains range-bound just under $120,000. A breakout beyond resistance—over $120,000—could set the stage for a fresh leg higher. Failure to hold support near $115,000, however, might pave the way toward a retest of lower levels near $110,000.

Ethereum and XRP appear more vulnerable, having underperformed in recent trading sessions and facing greater pressure from both macro headwinds and speculation around upcoming crypto regulations.

Investor Takeaways

The move underscores how macroeconomic developments—particularly U.S. inflation and trade policy—are increasingly dictating cryptocurrency price behavior. While Bitcoin shows relative resilience, Ethereum and XRP have borne the brunt of short-term risk flows.

Absent renewed ETF demand or a clearer policy framework, the broader crypto complex may struggle to hold recent gains. For investors, the outlook remains cautious, with critical support levels near $115,000 for Bitcoin, $3,800 for Ethereum, and XRP testing lower technical thresholds.

Let me know if you’d like a coin-by-coin technical breakdown or comparative view of momentum indicators across major tokens.