XRP Falls Below 200-day Average, Bitcoin Dips to $105K as Traders Eye Core PCE
Friday’s cryptocurrency market exhibited a bearish trend, with XRP falling below key support levels, mirroring losses in Bitcoin and other major tokens. This downturn occurred as investors awaited the release of the core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge.
XRP, a payment-focused cryptocurrency, breached its 200-day simple moving average (SMA) for the first time since April 10th, a significant indicator of strengthening bearish momentum. Prices dropped below $2.20, registering a 24-hour decline of 4.6%, despite recent reports suggesting increased corporate demand for XRP as a treasury asset.
Bitcoin (BTC), the leading cryptocurrency by market capitalization, briefly dipped below $105,000 during European trading hours, extending overnight losses to nearly 3% for the 24-hour period. This decline followed a substantial $358 million net outflow from 11 spot Bitcoin exchange-traded funds (ETFs) on Thursday – the first outflow since May 13th and the largest single-day outflow since March 11th. This outflow, coupled with renewed trade war anxieties, further dampened market sentiment.
Other major cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), experienced even steeper losses. Smaller-cap tokens, such as Optimism (OP), Arbitrum (ARB), Bonk (BONK), and Pepe (PEPE), suffered declines exceeding 10%.
Economists surveyed by FactSet projected that April’s core PCE would show a 0.12% monthly increase and a 2.5% annual increase. The actual figures revealed a 0.15% monthly rise and a 2.2% annual rate, down from March’s 2.3%. A positive inflation report could bolster expectations of Federal Reserve rate cuts, potentially benefiting Bitcoin and other assets.
Valentin Fournier, Lead Research Analyst at BRN, commented that market attention is now focused on the Core PCE data, with the potential for renewed bullish sentiment if inflation shows further easing. The market’s current somber mood underscores the significant impact of macroeconomic factors on cryptocurrency prices.
