Bitcoin and Ethereum have fallen over 40% due to low institutional support and less demand in the market.
The weak markets for Ripple and SHIB suggest that investors are less interested in both utility-based and meme cryptos.
Unstable PPI data in the U.S. kept the market from calming down, highlighting that risk aversion is still more important to investors than other factors.
Within a short period, the cryptocurrency market has seen leading tokens such as Bitcoin (BTC), Ethereum (ETH), XRP, and Shiba Inu (SHIB) fall more than 40%.
https://twitter.com/AnnaEconomist/status/1923008098341409238
The CFI report’s findings came as a surprise since the U.S. PPI was already expected to ease inflation. This move goes against the idea that crypto prices should go up as inflation cools and underlines the gap between the traditional economy and the crypto market.
Bitcoin’s Price Collapse Defies Market Fundamentals
Bitcoin, the largest cryptocurrency by market capitalization, has experienced a remarkable drop of over 40% from its recent local high. Despite expectations that a soft U.S. PPI would reduce pressure on the Federal Reserve to maintain high interest rates, Bitcoin failed to respond positively.
Source: (X)
Analysts suggest this selloff is driven more by market structure than economic fundamentals. Liquidations are on the rise, buyers are reluctant, and fewer institutions are participating, which is causing the trend. Dropping below $60,000 has made investors realize that the market is not showing much bullishness.
Ethereum Drops Sharply as Network Growth Fails to Support Price
Ethereum’s recent decline has been no less severe. The asset dropped more than 40% amid weakening momentum, despite several recent upgrades to its network. The lack of market reaction to these developments shows that current conditions are being dictated more by macro-level factors than by project-specific news. Ethereum has not managed to maintain support around $3,000, and the trading volume has declined a lot. Despite ETH being an essential part of decentralized apps, the price at present indicates that investors are doubtful about its direction.
XRP Sees Aggressive Pullback Amid Broader Crypto Weakness
XRP, often considered more stable due to its association with institutional finance and cross-border payments, has also fallen victim to the recent correction. The token is down over 40% from its previous peak, trading near multi-month lows. In the past, XRP has benefited from demand in the market, where it was very useful. However, this trend has now reversed. Experts state that decreasing trading volumes and limited advancements in Ripple Labs' legal cases are behind the current losses. Lack of a main storyline about XRP may have increased its vulnerability during the selloff.
SHIB’s Momentum Evaporates in Face of Risk-Off Sentiment
Shiba Inu (SHIB), a high-risk, meme-based token that experienced explosive growth in past bull runs, has seen a dramatic retreat. The asset has dropped over 40%, erasing much of the speculative gains seen earlier this year. SHIB has always been influenced by retail enthusiasm rather than utility, and with overall risk appetite shrinking, speculative assets have borne the brunt of the market’s decline. Analysts say the sharp downturn in SHIB also underscores the fading interest in meme tokens as broader liquidity tightens.
