XRP Rises 3%, Bitcoin Declines as Crypto Market Drops Before Today’s US Inflation Report

Bitcoin decreased approximately 2% to around $102,400 on Tuesday, reversing much of the surge seen late Monday and causing a downturn in the wider cryptocurrency market.

Statistics reveal that Ethereum experienced a drop of 3.8%, nearing $2,450, while Solana fell by 3.6%, landing at $171.

What’s Causing Bitcoin’s Decline?

The fluctuations occurred just hours before the U.S. Bureau of Labor Statistics was set to release April consumer price information at 8:30 A.M. ET. Traders reduced their exposure due to concerns that a stronger-than-expected report could drive Treasury yields and the dollar higher, which typically pressures cryptocurrency prices.

Profit-taking ensued after Bitcoin’s rise above $105,000 on Monday, seemingly reigniting the rally that had briefly pushed its value to an all-time high near $109,300 earlier in January.

Recent data from major derivatives markets shows a slight contraction in open interest of approximately 11% this week from January highs, indicating a decrease in speculative leverage despite continued accumulation by long-term holders.

Demand from corporations remains strong. One strategy acquired 13,390 BTC for around $1.34 billion between May 5 and May 11, increasing its total treasury to 568,840 BTC, which represents about 2.7% of the circulating supply.

This purchase was outlined in the company’s May 8 filing, funded via the final tranche of a $2.1 billion at-the-market equity initiative.

Other Cryptocurrencies Decline, Except XRP

The drop in Ethereum followed last week’s Pectra hard fork, which enacted 11 enhancements aimed at improving execution and lowering fees.

Initial transaction cost figures suggest some relief, but Ethereum’s proportion of total value locked has continued to decrease as competing Layer-1 networks attract developers with more affordable base fees.

Solana continues to be viewed as a high-risk asset, having surged from $105 to close to $180 during April’s tariff-driven fluctuations. A decentralized exchange (DEX) volume of $35.6 billion, along with ongoing network activity, maintains an optimistic outlook despite the broader market downturn.

In contrast, XRP rose by about 3% to approximately $2.50, showing a 5% increase for 2025, even while Bitcoin and Ethereum remained stagnant or declined.

This uptick is attributed to Ripple’s March settlement with the U.S. Securities and Exchange Commission, which reduced the civil penalty to $50 million, alongside the anticipation of CME’s cash-settled XRP futures launch on May 19.

Future Prospects for Bitcoin and the Overall Market

Current indicators from derivatives trading suggest that Bitcoin’s psychological barrier at $100,000 is acting as initial support. A cooler-than-expected consumer price index reading could potentially revive bullish trends, whereas a higher figure could provoke a deeper shift into cash and short-term Treasury bills.

Traders are estimating a one-day implied movement of around 2.5% for Bitcoin, predicting a fluctuation of $2,500 in either direction.

The market remains less saturated compared to January’s record flow, attributed to expanded bid-ask spreads as market makers await more clarity regarding Federal Reserve policies. There are still three scheduled rate-setting meetings this year, the next taking place on June 11-12.

With the release of the April CPI reading approaching and light positioning in derivatives, market participants will soon discover whether Bitcoin can maintain its six-figure stronghold after the halving.