Bitcoin (BTC) Slumps 2.3% to $57,000 After Briefly Surpassing $59,000: XRP Tokens Only Major Gainers
The cryptocurrency market took a hit as Bitcoin (BTC) fell 2.3% in the past 24 hours, dropping to $57,000 after briefly surpassing $59,000 on Thursday. This decline came after a spike following the latest U.S. CPI readings, which showed a 3.3% rise in core CPI for June versus an expected 3.5%.
While the CPI report initially appeared bullish for risk assets like cryptocurrencies, it turned out to be a “buy the rumor, sell the news” event, with prices being driven up in anticipation of a good report. As a result, Bitcoin’s price dropped, dragging down the broader crypto market with it.
XRP tokens were the only major gainers, rising 5% in the past 24 hours amid favorable developments. This increase came as traditional futures powerhouse CME and CF Benchmarks announced the debut of indices and reference rates for XRP, potentially boosting institutional adoption.
One trader noted that bulls were likely “on the sidelines” amid selling pressure from bitcoin wallets belonging to the German state of Saxony. The state transferred over $600 million worth of BTC to exchanges on Thursday, moving one of the biggest chunks in weeks.
Overall, the market remains cautious, with some traders waiting for Bitcoin to make a move higher before expecting gains in major tokens. The current price lull is seen as a result of market participants staying on the sidelines, wary of potential selling pressure from various sources.
