The cryptocurrency market faced a decline over the past day, with total market capitalization slipping by 3.49%. This drop follows a week of substantial positive momentum.
Bitcoin Leads Decline but Holds Above $118K
Bitcoin (BTC) has pulled back 3.72% over the last 24 hours, trading near $118,895. This sell-off may simply be a cooling phase after overbought conditions, with Bitcoin still holding above important support levels.
Dogecoin and XRP See Steeper Losses
Meme favorite Dogecoin (DOGE) was one of the bigger losers in the top 10, dropping 8.72% to $0.2273. XRP (XRP) also posted a notable 6.38% drop to $3.10, erasing a chunk of its weekly gains.
Why the Market is Falling
One of the main triggers behind the sudden pullback is fresh macroeconomic data from the U.S. July’s core Producer Price Index (PPI) came in at 0.9%, higher than market expectations. This reading reduces the odds of the U.S. Federal Reserve cutting interest rates in September, a move that had been partly priced in by risk assets like crypto.
Short-term fluctuations in the cryptocurrency market, driven by macroeconomic factors, emphasize the importance of paying attention to economic data and its impact on investment decisions.
