XRP lags as Bitcoin and Ethereum cool after inflation-led rally

Crypto cooled Thursday after softer inflation data helped Bitcoin and Ethereum rally earlier in the week. For everyday investors watching the big tokens, the notable part is that XRP has not joined the move with the same force.

Price data cited by Decrypt showed Bitcoin at $64,396, down 0.96%, while Ethereum traded at $1,876.75, down 2.12%. XRP was around $1.11, off 0.48%, leaving it broadly flat while the market took a modest step back.

The pullback followed a strong crypto move tied to macroeconomic data. Decrypt reported that the June Consumer Price Index fell 0.4%, the largest one-month decline since April 2020. CPI measures inflation by tracking changes in consumer prices. Lower inflation can reduce pressure on the Federal Reserve to raise interest rates, which often supports risk assets such as stocks and crypto.

According to Decrypt, odds of a July Fed rate hike fell from 31% to single digits after the CPI report. The move helped lift equities and gave crypto traders a fresh reason to take on risk.

Bitcoin and Ethereum got the cleaner boost

Bitcoin pushed through the $64,000 level that had acted as resistance for weeks, Decrypt reported. Resistance is a price zone where sellers have previously stepped in and slowed a rally. Ethereum moved more sharply, rising nearly 6% in a day and touching $1,900.

Large U.S. banks also added to the broader risk-on mood. Decrypt reported that Goldman Sachs, JPMorgan, Morgan Stanley and Citi all posted second-quarter earnings that beat expectations.

Thursday’s market action looked more like a pause than a broad selloff, based on Decrypt’s summary. Most top-50 crypto assets were down less than 3%, while Ondo stood out as one of the few major gainers on tokenization-related momentum.

XRP’s move remains muted

XRP opened Thursday at $1.11257, reached $1.11722 and later traded at $1.10650, down 0.54%, according to Decrypt. The token did not see a sharp drop, but it also failed to match the stronger moves seen in Bitcoin and Ethereum earlier in the week.

Decrypt pointed to technical weakness in XRP’s chart, including a confirmed “death cross” on the daily chart. A death cross happens when a shorter-term moving average falls below a longer-term moving average, a setup traders often read as a bearish signal. Decrypt also cited an overall indicator score of negative 42% for XRP.

The broader market setup may also be working against smaller tokens. Decrypt cited an Altcoin Season Index reading of 45, with a level below 50 signaling that Bitcoin and Ethereum are still attracting more relative attention than the wider altcoin market.

That pattern has shown up before. In early July, Decrypt reported that a $602 million short liquidation event helped send Bitcoin back toward $62,000. Short liquidations happen when traders betting on lower prices are forced to close positions, which can add buying pressure. XRP rose about 3% in that move, while Ethereum and Solana gained nearly twice as much, according to Decrypt.

Regulatory catalyst delayed

XRP also lacks a near-term catalyst that traders had been watching. Decrypt reported that a Senate floor vote on the Clarity Act slipped past July 4 and now appears likely in late July or August at the earliest.

The legislation could classify XRP as a commodity, according to Decrypt, a designation that could affect institutional demand and potential exchange-traded fund interest. With that vote no longer imminent, XRP is trading more on broad market sentiment, where Bitcoin and Ethereum are currently setting the pace.

This story draws on original reporting from Decrypt.