XRP Rises While Bitcoin and Ethereum Edge Lower Amid Inflation Data

By: Eliza Bennet

The cryptocurrency market witnessed notable movements as investors keenly awaited the U.S. consumer price data for April, which was released today by the Bureau of Labor Statistics. Labor Department data indicated a cooling of U.S. consumer inflation with the Consumer Price Index (CPI) rising by 2.3% year-over-year. This came amidst a temporary 90-day tariff freeze, providing policymakers with a window to assess baseline inflation without the influence of additional import costs.

The broader cryptocurrency market experienced some turbulence ahead of the inflation data. Bitcoin, which had recently soared above $105,000, fell sharply to about $102,400, marking a 2% decrease. This decline followed a brief rally on Monday, where Bitcoin sought to reclaim its all-time high near $109,300. Ethereum also followed a downward trajectory, falling by 3.8% to settle near $2,450. Among the major altcoins, Solana declined 3.6% to $171, while XRP bucked the trend and rose by approximately 3% to $2.50 amid broader market volatility.

The anticipation of the consumer price data influenced traders across various platforms, leading to increased caution and reduced speculative leverage in major derivatives venues. Notably, Strategy Inc. made a significant move by adding 13,390 BTC, valued at approximately $1.34 billion, to its treasury. This transaction highlighted ongoing corporate demand for Bitcoin, despite the market's immediate fluctuations.

XRP's gains can be attributed to recent favorable developments, including Ripple's March settlement with the U.S. Securities and Exchange Commission, which reduced the civil fine to $50 million. Investors are also eyeing the upcoming debut of CME's cash-settled XRP futures, expected to further boost the token's appeal. Traders are now focusing on Bitcoin's $100,000 support level, with market participants awaiting potential effects from the next Federal Reserve policy meeting scheduled for June 11-12.