Major Cryptocurrencies Face Decline Following CPI Data

Date: June 12, 2025
By: Damian Chmiel

Cryptocurrency prices took a notable dip today, with significant declines observed across major digital assets like Bitcoin, Ethereum, Dogecoin, and XRP. This downward movement comes on the heels of the latest Consumer Price Index (CPI) data from the United States, which contributed to a mixed reaction from investors.

Current Market Snapshot

As of Thursday morning, Bitcoin, the leading cryptocurrency, is trading at approximately $107,000, down from an earlier peak of $110,000. Ethereum, the second-largest cryptocurrency by market cap, is fluctuating around $2,750 after having tested $2,878 earlier this week. XRP has seen a consistent downward trend, now priced at $2.23, while Dogecoin has dropped to $0.19 after experiencing a recent rally above the key $0.20 level.

The fluctuations in these prices come amidst a broader environment of market volatility and uncertainty as investors navigate the implications of economic indicators and global events.

The Impact of U.S. CPI Data

The recent CPI report showed annual inflation at 2.4%, slightly lower than the expected 2.5%. Initially, this softer reading provided a temporary boost to cryptocurrency prices, leading some analysts to suggest that inflation might be easing. However, the optimism was short-lived as subsequent sales by investors led to a correction in the market.

Dr. Kirill Kretov from CoinPanel commented on the situation, stating, “The latest U.S. CPI data has been published and came in slightly cooler than expected, giving the market some optimism that inflation might be easing. However, macroeconomic uncertainty is still high. With the market’s thin liquidity, even moderate players with enough capital could easily move prices against expectations.”

Market Reactions and Liquidations

Amidst this backdrop, over $683.4 million in crypto futures contracts were liquidated within a 24-hour period, significantly amplifying the downward pressure on prices. The majority of these liquidations occurred in long positions, highlighting the extent of overleveraging among bullish traders. The total market capitalization for cryptocurrencies fell below the pivotal $3.35 trillion mark, triggering algorithmic selling and stop-loss orders that perpetuated further declines.

Bitcoin has seen its price consolidate above key moving averages, suggesting that despite the current downturn, many analysts remain cautiously optimistic about its long-term prospects. Predictions for Bitcoin stabilizing between $100,000 and $120,000 are commonplace, with some forecasting models suggesting a potential target of $115,000 by early July.

Expert Insights on Future Price Predictions

Looking forward, expert analysis remains varied but cautiously optimistic. While some analysts like Tom Lee from Fundstrat highlight potential upward targets of $150,000 to $250,000 by year-end, others suggest a more tempered outlook, emphasizing the need for sustained bullish momentum amid prevailing economic uncertainties.

Ethereum’s price predictions spark a similarly cautious tone, with analysts suggesting it could recover to the $2,800-$2,900 range if bullish conditions return mid-month. However, they warn that downside risks remain, particularly if macroeconomic sentiments falter further.

XRP continues to be under pressure from ongoing regulatory developments, while Dogecoin’s trajectory mirrors broader market trends.

Conclusion: Navigating Market Dynamics

As the cryptocurrency market remains in a state of flux, investors are advised to stay abreast of both macroeconomic indicators and significant developments within the industry. The fluctuations seen today serve as a reminder of the inherent volatility that characterizes the crypto landscape, as traders navigate the complexities of economic data and market sentiment.

As the summer progresses, traders will be closely monitoring new developments, including the resolution of the Ripple lawsuit which could serve as a significant catalyst for XRP and the broader market dynamics.