Unexpected Inflation Result Suppresses XRP’s Price

• XRP’s price declined 10% on Thursday.
• An unexpected PPI result triggered a price pullback for XRP.
• Bitcoin and Ethereum also experienced pullbacks following the July PPI release.

XRP experienced a sharp decline on Thursday, dropping over 10% after the release of the July Producer Price Index (PPI) in the US. The cryptocurrency reversed from what seemed to be a bullish trend, lost its early daily gains, and dropped from $3.35 to retest the $3 support, according to data from TradingView.

The US July PPI dampened rate-cut expectations

The released data reflected a 3.7% inflation, raising concerns about the Federal Reserve’s potential to cut interest rates. For context, interest rate cuts typically trigger a bullish sentiment in the crypto market and other risk assets. Hence, signals of not realizing such an expectation intensified bearish sentiment among crypto investors, leading to Thursday’s decline after a promising beginning to the trading day.

Bitcoin and Ethereum also experienced pullbacks after the release of the US PPI. TradingView’s data shows that Bitcoin dropped by nearly 6% after reaching a new all-time high at $124,533. At the same tim…

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