In just a matter of hours on Thursday, August 14, XRP’s market capitalization dropped from $192.28 billion to $182.73 billion, erasing nearly $10 billion in value.
The token is trading at $3.13 at the time of writing, down 3.88% on the daily chart, although it’s still up 2.47% this week following Ripple’s legal victory, according to CoinMarketCap.
Hardly an isolated incident, it appears that the drop was largely a consequence of the U.S. Government’s newly reported inflation data showing the highest increase percentage since June 2022.
Crypto market takes a hit following inflation reports
Multiple U.S. risk assets tumbled today as new inflation data led to fresh concerns regarding Federal Reserve cuts.
The July Producer Price Index (PPI) jumped 0.9% since June, well above the 0.2% forecast. On a year-over-year basis, it rose 3.3%, also above 2.5% expectations and June’s 2.4%.
Core PPI, which strips out food and energy, also surged 0.9%, surpassing the 0.2% consensus. Annual core Consumer Price Index (CPI), on the other hand, climbed to 3.7% from June’s 2.6%, beating the general forecasts of 2.9%.
Bitcoin (BTC), which saw a new all-time high of over $124,000, plunged below $119,000 on the same day. Similarly, Solana (SOL) dropped 6.37% from $204 to $191.
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