XRP Gains 3 Percent as Bitcoin Drops to 102K Ahead of April US Inflation Data

XRP Rises 3 Percent While Bitcoin Drops Below 103K as Traders Await US Inflation Report

The cryptocurrency market edged lower today as Bitcoin slipped 2.3% to $102,400 and Ethereum declined 3.8% to $2,450, ahead of the release of April U.S. inflation data. Market participants are bracing for heightened volatility as the Consumer Price Index (CPI) update arrives, a key factor that could steer crypto valuations in the short term.

Bitcoin Retreats as Risk Appetite Shrinks

Bitcoin had climbed past $105,000 on Monday, but profit-taking and inflation fears reversed the trend. The market pulled back as traders feared a hotter-than-expected CPI print might push Treasury yields and the U.S. dollar higher—conditions typically bearish for digital assets.

Even as speculative interest softened—open interest on derivatives dropped 11% this week—long-term accumulation continues. Institutional demand remains strong: Strategy added 13,390 BTC, valued at $1.34 billion, funded through a $2.1 billion equity program. Their holdings now represent 2.7% of Bitcoin’s circulating supply.

Ethereum and Solana Follow Bitcoin Lower

Ethereum dropped 3.8%, despite recent bullish momentum from its Pectra upgrade, which introduced 11 technical improvements. While transaction fees have decreased slightly, Ethereum’s share of total value locked (TVL) is slipping as Layer-1 competitors offer lower-cost alternatives.

Solana (SOL), often seen as a high-beta crypto, slipped 3.6% to $171. Despite the correction, bullish sentiment remains due to strong DEX activity and robust network volume, which hit $35.6 billion in April.

XRP Defies Market Trend With 3 Percent Gain

Breaking from the downtrend, XRP rose 3.3% to $2.49, posting a 5% gain year-to-date. The price strength follows Ripple’s favorable March settlement with the SEC, which lowered its fine to $50 million. Anticipation for the CME’s XRP futures launch on May 19 has also fueled investor interest.

What’s Next for Bitcoin and the Market?

Bitcoin now faces a key psychological support level at $100,000. The April CPI report, released today, showed inflation cooled to 2.3% year-over-year, a slightly dovish signal that may help stabilize sentiment.

Options data suggest a 2.5% implied move for Bitcoin today, indicating a swing of up to $2,500 in either direction. With thin market depth and widening bid-ask spreads, the broader market awaits further clarity on Federal Reserve policy. The next FOMC meeting is scheduled for June 11–12.

Crypto Market Snapshot:

Disclaimer:

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments involve significant risk. Always conduct your own research and consult with a licensed financial advisor before investing.