XRP Drops Below 200-day Average, Bitcoin Declines to $105K as Core PCE Data Awaits

The crypto market was in a gloomy state on Friday as XRP suffered a significant hit, dropping below its 200-day simple moving average, indicating a potential increase in downward momentum.

Key Points:

• XRP fell below $2.20, registering losses of 4.6% over 24 hours.
• Bitcoin (BTC) dropped below $105,000, extending its losses by nearly 3%.
• A $358 million outflow from Bitcoin ETFs also influenced these declines.
• The core PCE index, a major indicator of inflation, is expected to impact market sentiments and could inform future decisions by the Federal Reserve.

Market Sentiment

The decline comes amid growing discussions about XRP becoming a favored corporate treasury asset. Meanwhile, BTC’s downturn follows notable outflows from bitcoin ETFs, marking the first significant movement since May 13.

Core PCE Focus

As the personal consumption expenditure index shows an increase in consumer prices, analysts project the core PCE to have risen on a monthly basis. A favorable outcome for inflation could boost market sentiment for BTC and other cryptocurrencies.

“All eyes now turn to the Core PCE data due today, which could reignite bullish sentiment if inflation shows signs of easing,” said Valentin Fournier, Lead Research Analyst at BRN, in an email.

Translation: “All eyes now turn to the Core PCE data due today, which could reignite bullish sentiment if inflation shows signs of easing.”