Ethereum News Alert: Bitcoin, Ethereum, Dogecoin Plunge 2-6% as Inflation Surge Crushes Rate Cut Hopes
The cryptocurrency market took a sharp downturn today as Bitcoin, Ethereum, and Dogecoin all fell significantly following hotter-than-expected inflation data. With the Fed’s preferred inflation gauge rising to 2.6%, hopes for interest rate cuts have dimmed, sending shockwaves through both crypto and traditional markets.
Ethereum News: Market Plunge Amid Inflation Fears
The latest Ethereum news highlights a 3.77% drop to $3,680.37, breaking below the key $3,700 support level. This decline mirrors broader market trends as investors react to economic indicators suggesting prolonged higher interest rates.
Bitcoin Price Drop: Analyzing the 2.17% Decline
Bitcoin fell to an intraday low of $114,369.87 before settling at $115,531.73. Key factors behind this Bitcoin price drop include:
- Unexpected inflation rise to 2.6% (vs. 2.5% expected)
- Fed Chair Powell’s hawkish comments
- $570 million in long positions liquidated
Dogecoin Decline: The Biggest Loser at 5.72%
Meme cryptocurrency Dogecoin led the downturn with a 5.72% decline to $0.2084. The Dogecoin decline reflects its higher volatility compared to major cryptocurrencies like Bitcoin and Ethereum.
Inflation Impact on Crypto Markets
The inflation impact was felt across all risk assets. The crypto market cap dropped 2.33% to $3.78 trillion, while traditional markets also fell:
| Index | Decline |
|---|---|
| Dow Jones | 0.74% |
| S&P 500 | 0.37% |
| Nasdaq | 0.03% |
Crypto Market Analysis: What’s Next?
Despite the downturn, our crypto market analysis reveals some positive signs:
- Bitcoin gained 8% in July
- Ethereum surged 48% for the month
- Retail demand for Bitcoin appears to be growing
Analyst Michaël van de Poppe predicts Ethereum could reach $4,000 before a pullback, with altcoins potentially entering a bull run in 12-24 months.
FAQs
Why did cryptocurrencies drop today?
Cryptocurrencies fell due to higher-than-expected inflation data (2.6% vs 2.5% expected), reducing hopes for Federal Reserve rate cuts.
How much did Bitcoin, Ethereum, and Dogecoin lose?
Bitcoin dropped 2.17%, Ethereum fell 3.77%, and Dogecoin declined 5.72%.
What was the inflation rate that caused the market drop?
The U.S. PCE price index rose to 2.6% year-over-year, above the 2.5% expectation.
Are there any positive signs in the crypto market?
Yes, Bitcoin gained 8% and Ethereum surged 48% in July, showing strong monthly performance despite the recent drop.
What do analysts predict for Ethereum’s price?
Some analysts predict Ethereum could reach $4,000 before experiencing a pullback.
How did traditional markets react to the inflation news?
The Dow fell 0.74%, S&P 500 dropped 0.37%, and Nasdaq declined 0.03%.
