Ethereum News Today: Bitcoin Ethereum Dogecoin Fall 2.17 3.77 5.72 As Inflation Rises Above 2.6 Expectations Dim Rate Cut Hopes

Cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) declined sharply on Thursday as unexpectedly high inflation data dimmed hopes for interest rate cuts, dragging the broader market along with it [1]. The U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose to 2.6% year-over-year, surpassing expectations of 2.5% and climbing from 2.3% in May. This has fueled skepticism about the Fed's ability to cut rates this year, with Chair Jerome Powell’s hawkish remarks following the July meeting contributing to market anxiety [1].

Bitcoin dropped to an intraday low of $114,369.87, recording a 2.17% decline to $115,531.73 at 9:40 p.m. ET. Ethereum fell 3.77% to $3,680.37, sinking below $3,700. Dogecoin fared worse, losing 5.72% to settle at $0.2084. The market downturn hit bullish long traders hard, with over $570 million in long positions lost in the previous 24 hours [1]. The "greed" sentiment in the crypto space weakened further, according to the Crypto Fear & Greed Index [1].

Despite the sharp drop, both Bitcoin and Ethereum had a profitable July. Bitcoin gained nearly 8% for the month, while Ethereum surged over 48% [1]. Open interest in Bitcoin decreased by 0.86% in the past 24 hours, while Ethereum's unsettled contract funds dropped 1.83% [1].

Among the top performers in the 24-hour period, Toncoin (TON) rose 2.00% to $3.49, XDC Network (XDC) increased 1.77% to $0.09785, and Story (IP) climbed 1.16% to $6.02 [1]. The global cryptocurrency market capitalization stood at $3.78 trillion, reflecting a 2.33% decline in the last 24 hours [1].

The stock market mirrored the crypto selloff, with the Dow Jones Industrial Average falling 0.74%, the S&P 500 dipping 0.37%, and the Nasdaq Composite losing 0.03% [1].

Analysts weighed in on the market dynamics. Cryptocurrency analyst CW noted that retail demand for Bitcoin appears to be on the rise, with transfer volumes at the bottom of a growth trend [1]. Another analyst, Michaël van de Poppe, predicted Ethereum could reach $4,000 in the short term before experiencing a pullback, while the broader altcoin market could see a strong bull run over the next 12–24 months [1].

The market's bearish sentiment is evident in the widespread losses in crypto derivatives, with leveraged positions suffering significant damage. However, the long-term fundamentals for Bitcoin and Ethereum remain strong, supported by retail investor interest and a historically strong July performance [1].

Source: [1] Bitcoin, Ethereum, Dogecoin Slide As Hotter-Than-Expected Inflation Dims Rate Cut Hopes: Analyst Sees ETH Dip After $4,000 Peak (https://www.benzinga.com/crypto/cryptocurrency/25/07/46781179/bitcoin-ethereum-dogecoin-slide-as-hotter-than-expected-inflation-dims-rate-cut-hopes-analyst-sees-eth-dip-after-4000-peak?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)