The cryptocurrency market is under pressure as traders shift to a defensive stance ahead of the release of the Core PCE inflation data, a critical Federal Reserve inflation gauge. Leading altcoins Dogecoin (DOGE) and XRP have suffered noticeable declines, while Bitcoin price fluctuations continue to mirror broader investor sentiment tied to macroeconomic concerns.
As of Thursday morning, Dogecoin fell 2.5% to $0.22774, holding just above a key support level, while XRP mirrored the drop, trading at $2.34. Bitcoin remained relatively stable, down just 1% at $109,698, but price action continues to reflect elevated anxiety across markets.
With Friday’s Core PCE report poised to shape the Federal Reserve’s monetary policy outlook, crypto profit-taking ahead of inflation data has become the dominant trend. The report is expected to provide fresh insight into the central bank’s next moves regarding interest rates, with traders watching closely for any signs of persistent inflationary pressure.
Dogecoin Price Decline: Support Holding Amid Volatility
DOGE slides below $0.23 but finds support near $0.227
Dogecoin price performance has been particularly volatile in recent sessions. After falling from $0.238 to $0.227 in the past 24 hours, the meme coin found firm support, indicating the presence of buyer demand rebuilding at lower levels.
According to CoinDesk’s technical analysis, the price of DOGE formed a bearish channel, with resistance now observed at $0.236 and emerging support at $0.224. The $0.227 zone has proven critical, with high-volume buying (643 million DOGE traded in a single hour) signaling defensive interest from investors.
While DOGE remains under pressure due to broader market sentiment, the consolidation pattern forming between $0.227–$0.230 reflects a temporary stabilization. However, as inflation data approaches, cryptocurrency market volatility is expected to intensify.
XRP Market Performance: Sluggish Recovery, Bearish Bias
XRP, another closely watched altcoin, has struggled to mount a sustained rebound. Down 2.5% over the past day, XRP’s chart suggests a tepid recovery rather than a firm bullish reversal. The token continues to face resistance amid low-risk appetite and macro-driven caution.
Investor confidence in XRP has waned slightly despite broader optimism about upcoming developments in Ripple’s legal battles and global expansion. In the current macroeconomic landscape, short-term price performance is more heavily influenced by risk sentiment and crypto profit-taking strategies.
Bitcoin Price Fluctuations Reflect Macro Uncertainty
Bitcoin’s relative stability this week masks an underlying tension across the crypto market. At just under $110K, BTC appears to be consolidating near psychological levels. But technical indicators and implied volatility metrics show that traders are preparing for possible swings.
The BTC July-to-June implied volatility spread, which spiked above 2 vols last week, has now compressed to under 1. This indicates that traders are reducing expectations for massive near-term price swings but still remain alert for a macro-economic impact on crypto due to policy shifts or data surprises.
In particular, President Trump’s proposed 50% tariffs on European imports, announced late last week, rattled risk markets globally. QCP Capital called the announcement a stark reminder of how fast policy shocks can derail market calm.
Also read: Australian Senator’s Bitcoin Comments Ignite National Crypto Uproar
Federal Reserve in Focus: Core PCE Print Could Shift Momentum
The most anticipated event this week is the release of the Core Personal Consumption Expenditures (Core PCE) index, which strips out volatile food and energy prices and is regarded as the Fed’s preferred measure of inflation. Friday’s numbers will likely determine whether the central bank continues with its hawkish pause or leans toward a dovish pivot later this year.
While traditional equities and bond yields are reacting to inflation expectations, crypto markets have taken a cautious stance, especially among short-term traders. The current price action across assets like DOGE and XRP is indicative of profit-taking ahead of inflation data as investors reduce exposure to high-beta assets.
“In a world of erratic policymaking, crypto increasingly looks like the grown-up at the table,” noted Singapore-based trading firm QCP Capital, referring to how Bitcoin has outperformed traditional tech ETFs like TQQQ amid rising uncertainty.
ETF Inflows Show Institutional Confidence
Despite volatility, crypto ETF inflows remain consistent, particularly for BlackRock’s IBIT, which has now seen 30 consecutive days of net inflows. This sustained interest underscores how institutional players view digital assets as viable long-term holdings, even as the broader market reacts to short-term economic pressures.
The divergence between digital assets and tech-heavy ETFs is telling. While traditional equity products are seeing outflows and rebalancing, crypto has remained resilient—especially Bitcoin and Ethereum—thanks in part to ETF support and liquidity depth.
Dogecoin and XRP: Risk Assets in a Data-Driven Market
DOGE and XRP remain barometers of retail sentiment. These tokens often experience exaggerated moves during macro shifts, making them highly sensitive to inflation data, central bank commentary, and liquidity conditions. As the Fed assesses the inflation trajectory, these assets are likely to exhibit above-average volatility.
For now, both DOGE and XRP have entered consolidation zones after recent pullbacks, with technical support holding but upside momentum limited. If Friday’s Core PCE data shows cooling inflation, a short-term rally could materialize. Conversely, an upside surprise in inflation could trigger another wave of selling across the crypto market.
Conclusion: All Eyes on Inflation Data as Crypto Pauses
The cryptocurrency market is taking a breather as traders position themselves for Friday’s key Core PCE inflation report. With Dogecoin price decline and XRP market performance under pressure, and crypto profit-taking taking center stage, volatility is likely to intensify.
While Bitcoin price fluctuations have been modest, the macro backdrop remains the primary driver. From tariff shocks to inflation metrics, the coming days will test market resilience. A dovish surprise could revive bullish sentiment, but until then, crypto market analysis points to continued cautious positioning.
Investors should prepare for data-driven moves and monitor key support zones in DOGE, XRP, and BTC as the week’s trading reaches a critical juncture.
