XRP Declines Past 200-Day Average, Bitcoin Pulls Back to $105K Amid Core PCE Anticipation

Cryptocurrency markets faced pressure on Friday as traders took a cautious stance ahead of the core PCE inflation report, a vital indicator that could guide the Federal Reserve’s upcoming monetary policy decisions.

XRP, a token centered on payments, fell below its 200-day simple moving average (SMA) for the first time since early April, signaling increased bearish momentum. The price slipped beneath $2.20, marking a 4.6% drop over the previous 24 hours, according to TradingView data. This decline came despite reports of growing corporate interest in XRP as a Treasury asset.

Bitcoin (BTC), the largest digital currency by market capitalization, also weakened, briefly trading below $105,000 during European sessions and extending its daily losses to nearly 3%.

BTC’s slide followed a $358 million net outflow from 11 spot bitcoin ETFs on Thursday — the first withdrawal since mid-May and the largest single-day exit since March, per SoSoValue figures. Renewed concerns about a potential trade war added to the risk-averse mood.

Other top cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), recorded steeper losses, while smaller altcoins such as Optimism (OP), Arbitrum (ARB), Bonk (BONK), and Pepe (PEPE) declined more than 10%, according to Coingecko.

Market Focus on Core PCE Inflation

The personal consumption expenditure (PCE) price index rose 0.15% in April, easing the annual inflation rate slightly to 2.2% from 2.3% in March, based on forecasts from economists surveyed by FactSet.

The core PCE, which excludes food and energy prices and is the Federal Reserve’s preferred inflation measure, is expected to show a 0.12% increase monthly and 2.5% annually.

If inflation continues to moderate, the market could see rising bets on Fed rate cuts, potentially benefiting bitcoin and other cryptocurrencies.

“Investor attention is fixed on the Core PCE data due today, which could spark renewed optimism if inflation trends lower,” said Valentin Fournier, Lead Research Analyst at BRN.Cryptocurrency markets faced pressure on Friday as traders took a cautious stance ahead of the core PCE inflation report, a vital indicator that could guide the Federal Reserve’s upcoming monetary policy decisions.

XRP, a token centered on payments, fell below its 200-day simple moving average (SMA) for the first time since early April, signaling increased bearish momentum. The price slipped beneath $2.20, marking a 4.6% drop over the previous 24 hours, according to TradingView data. This decline came despite reports of growing corporate interest in XRP as a Treasury asset.

Bitcoin (BTC), the largest digital currency by market capitalization, also weakened, briefly trading below $105,000 during European sessions and extending its daily losses to nearly 3%.

BTC’s slide followed a $358 million net outflow from 11 spot bitcoin ETFs on Thursday — the first withdrawal since mid-May and the largest single-day exit since March, per SoSoValue figures. Renewed concerns about a potential trade war added to the risk-averse mood.

Other top cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), recorded steeper losses, while smaller altcoins such as Optimism (OP), Arbitrum (ARB), Bonk (BONK), and Pepe (PEPE) declined more than 10%, according to Coingecko.

Market Focus on Core PCE Inflation

The personal consumption expenditure (PCE) price index rose 0.15% in April, easing the annual inflation rate slightly to 2.2% from 2.3% in March, based on forecasts from economists surveyed by FactSet.

The core PCE, which excludes food and energy prices and is the Federal Reserve’s preferred inflation measure, is expected to show a 0.12% increase monthly and 2.5% annually.

If inflation continues to moderate, the market could see rising bets on Fed rate cuts, potentially benefiting bitcoin and other cryptocurrencies.

“Investor attention is fixed on the Core PCE data due today, which could spark renewed optimism if inflation trends lower,” said Valentin Fournier, Lead Research Analyst at BRN.