- XRP price drops sharply as inflation data rattles crypto markets.
- Higher producer prices spark sell-off, pushing XRP value lower today.
- Inflation concerns fuel market retreat, sending XRP into steep decline.
XRP is facing notable selling pressure, with the token’s value sliding 5.3 percent in the past 24 hours. According to market figures, the drop was larger than Bitcoin and Ethereum, which each fell 3.3 percent over the same period.
At the time of writing, XRP was priced at $3.11, marking a 3.45 percent daily decline. It opened the session near $3.2474 before a sharp afternoon sell-off pushed it closer to the $3.10 level, where it has since traded in a narrow range.
According to data from the Bureau of Labor Statistics, the U.S. Producer Price Index rose by 3.7 percent in July. This increase topped the average economist forecast of 3 percent and was up from 2.6 percent in June. The 0.9 percent month-over-month gain was the steepest in more than three years, signaling persistent inflation.
The stronger-than-expected reading has shifted investor sentiment by lowering the odds of an imminent interest rate cut from the Federal Reserve. Risk assets, including cryptocurrencies, have been hit by a wave of profit-taking as traders brace for a longer period of higher borrowing costs.
Also Read: Major Cryptos Plunge in 24 Hours as Market Sell-Off Hits Bitcoin, Ethereum, XRP
Inflation data triggers XRP price drop
Market analysts point to the lingering effects of tariffs as a possible driver of the latest inflation rise. Higher producer prices may lead to broader price pressures, complicating the Fed’s path toward easing policy.
XRP had climbed earlier in the year on expectations that rates would be reduced. The new inflation data, however, has dampened that outlook and sparked selling across major coins.
According to CoinMarketCap data, XRP’s heaviest losses came immediately after the inflation report was released. The price movement closely mirrored the downturn across the broader crypto market, highlighting how macroeconomic data can influence digital asset valuations.
With inflation risks still in focus, traders are likely to remain cautious. Market participants will continue monitoring economic indicators that could shape expectations for monetary policy and, in turn, XRP’s near-term price direction.
Also Read: Cardano Soars to $1 on Golden Cross Before Sudden Sell-Off Hits Bulls
