Quick overview

Live XRP/USD Chart

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XRP is experiencing significant sell-offs in response to macroeconomic news during Thursday’s trading session. The cryptocurrency’s price decreased by 5.3 percent on the previous day. Ethereum and Bitcoin both saw declines of 3.3 percent during that period.

 

The altcoin is currently falling amid decreased optimism about the likelihood of interest rate cuts this year following the latest inflation data. The Producer Price Index (PPI) showed a much higher inflation level than expected, causing valuation pullbacks for cryptocurrencies and stocks.

Cryptocurrency investors have been eagerly awaiting interest rate cuts, and this year, XRP and other leading tokens have already experienced substantial gains amid predictions that cuts will happen soon. Price increases may be imminent, as the July PPI data indicate that the inflationary effects of tariffs are still beginning to spread throughout the economy

The July PPI report from the Bureau of Labor Statistics (BLS) was released this morning, and its findings have notably heightened the bearish sentiment in the cryptocurrency market. According to the report, July’s PPI inflation was 3.7 percent, surpassing the 3 percent threshold that most economists recommend.

The month-over-month increase of 0.9 percent was the largest in over three years, up from 2.6 percent in June. This new inflation data may make the Federal Reserve less likely to cut interest rates at its September meeting, raising concerns about the impact of tariffs on the economy. The bullish outlook for XRP and other cryptocurrencies could weaken if the anticipated rate cut does not happen.