Why Is Crypto Going Down Today? Bitcoin, Ethereum, Dogecoin, and XRP Prices Fall After CPI Read
The cryptocurrency market is experiencing a broad decline today, with major coins like Bitcoin, Ethereum, Dogecoin, and XRP all posting losses following the latest U.S. Consumer Price Index (CPI) report. Several factors are contributing to this downturn:
Key Reasons for the Crypto Downturn
Mixed Reaction to U.S. CPI Data
The latest CPI report showed annual inflation at 2.4%, slightly below the expected 2.5%. Initially, this "cooler-than-expected" inflation data sparked optimism and a brief rally in crypto prices. Bitcoin, for example, surged above $110,000 but quickly reversed to close lower, and similar patterns were seen in Ethereum and other major coins13.
Despite the positive inflation surprise, investors remain cautious due to persistent macroeconomic uncertainty, particularly concerns over the growing U.S. government debt burden and the potential for future policy shifts.
Stalled U.S.-China Trade Negotiations
Treasury Secretary Scott Bessent confirmed that U.S.-China trade talks are "a bit stalled," which has triggered risk-off behavior among global investors. Geopolitical uncertainty of this nature often leads to reduced demand for risk assets like cryptocurrencies.
Technical and Market Structure Factors
The total crypto market capitalization broke below the critical $3.35 trillion support level, triggering algorithmic selling and stop-loss orders. This technical breakdown amplified the downward momentum across the market.
Massive liquidations in crypto futures—over $683 million in the last 24 hours, with the majority from long positions—have further intensified selling pressure1.
Profit-Taking and Reduced Demand
After recent rallies to all-time highs, demand for Bitcoin and other major cryptocurrencies has waned. Profit-taking at higher price levels has contributed to the current pullback.
Liquidity and Volatility
The market remains thinly liquid, making it susceptible to large price swings even from moderate capital flows. This environment allows for greater influence by large traders or algorithmic strategies, increasing volatility.
Current Price Snapshot (June 12, 2025)
Source: CoinMarketCap, as reported by ABP Live