BTC, ETH & XRP Drop Ahead of Inflation Data

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• This week's significant drop across Bitcoin, Ethereum, and XRP could be attributed to a de-leveraging event as speculative positions are unwound, or it might signal a broader market fear that rising inflation will negatively impact risk assets like cryptocurrencies, potentially heralding a deeper correction.

  CryptonautID  · 2025-10-28 ·  2 months ago

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• This slump is driven by a "risk-off" market sentiment. Strong economic data and persistent inflation mean the Fed may keep rates higher for longer. This crushes speculative assets like crypto. It's both a de-leveraging event and a reaction to the grim inflation outlook, potentially setting the stage for a deeper correction if macro conditions don't improve.

  agnesss  · 2025-10-28 ·  2 months ago

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• This is primarily a violent de-leveraging event. The cascade was triggered by a combination of hotter-than-expected inflation data, which dampened hopes for near-term Fed rate cuts, and excessive leverage in the crypto derivatives market. Forced liquidations then accelerated the downturn across major assets.
  
  While the macroeconomic outlook is the underlying catalyst, the severity of the drop is a market mechanics issue. Such events, while painful, often flush out weak leverage and can create a healthier foundation for the next move. Whether this leads to a deeper correction will depend on if macroeconomic conditions continue to deteriorate or if the market absorbs the selling pressure.

  Fajrin19  · 2025-10-28 ·  2 months ago

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• News say up, but Bitcoin, Eth and Xrp is making strong red

  B03040498  · 2025-10-28 ·  2 months ago

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• Macro pressure and leverage unwind driving dip.

  Pranix  · 2025-10-28 ·  2 months ago

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• I’ve seen this movie before. Inflation headlines come and go, but Bitcoin’s supply doesn’t change. I’m stacking and ignoring the noise.

  DecentraDuke  · 2025-09-26 ·  4 months ago

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• If there is some major economic issue, I see it going down as people need money to spend. Long-term, the dollar is falling, so it's going to keep going up in both real & nominal terms for decades.

  HashWhisperer  · 2025-09-26 ·  4 months ago

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• People keep blaming inflation, but crypto’s been weak for weeks. Maybe it’s just losing steam and retail interest isn’t coming back as fast as everyone hoped.

  
  

  TokenTamer  · 2025-09-26 ·  4 months ago

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• The recent drop in Bitcoin, Ethereum, and XRP isn’t the result of a single trigger but a mix of macro pressures and market mechanics. Inflation expectations are front and center. Investors are watching the upcoming U.S. PCE inflation report because it heavily influences Federal Reserve rate decisions. If inflation runs hotter than expected, the Fed is less likely to cut rates, which keeps borrowing costs high and reduces appetite for risk assets like crypto. Digital assets are still treated as speculative investments by most institutions, so when real yields rise, capital tends to move toward safer options.

  
  

  At the same time, this sell-off looks like a textbook de-leveraging event. In the weeks leading up to the drop, leverage in crypto derivatives markets had been climbing, with open interest hitting multi-month highs. Once prices started to slip, heavily margined positions were liquidated, accelerating the move downward. That creates a feedback loop—falling prices trigger liquidations, which push prices lower.

  
  

  Ethereum and XRP are also dealing with their own narratives. ETH’s staking yields have tightened as network activity cooled, and some traders are rotating into faster-moving layer-2 or alternative chains. XRP’s ongoing legal uncertainty with the SEC adds an extra layer of caution for investors.

  
  

  Despite the current slump, the broader fundamentals haven’t changed much. Long-term adoption trends remain intact, institutional interest is growing, and Bitcoin’s supply schedule is fixed. This pullback is less about a broken thesis and more about short-term macro headwinds and leverage unwinds. Investors should focus on inflation data for clues to the next big move.

  TokenTamer  · 2025-09-26 ·  4 months ago

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• Looks more like a leverage flush than a real trend. Too many overleveraged longs got liquidated. If inflation numbers are tame, we could see a sharp bounce.

  CryptoCracker  · 2025-09-26 ·  4 months ago

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