Bitcoin (BTC) Price Falls Today, Weighing on Ethereum, XRP and Dogecoin

A slightly cooler-than-expected U.S. inflation reading initially boosted cryptocurrency prices but ultimately led to a market correction.

Cryptocurrency prices fell slightly on Wednesday, continuing their turbulent journey in June. The Consumer Price Index (CPI) reading, which came in slightly cooler than expected, initially boosted crypto prices but ultimately led to a market correction.

The crypto landscape has shown mixed signals during the last 24-hour window. Bitcoin price initially surged above $110,000 following cooler-than-expected U.S. Consumer Price Index (CPI) data, but subsequently retreated to close at $106,687, marking a 1.4% decline. The flagship cryptocurrency continues trading around $107,634 as of Thursday, maintaining its position as the market leader despite ongoing volatility.

[coin_mixed responsive=true]

Volatility in finance refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument's fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders use technical analysis to identify support and resistance levels, which, when breached, could trigger further price moves.

The crypto market has seen major shifts in recent months, with Bitcoin price attempting to break above the $110,000 resistance level multiple times but failing to sustain gains. These failed breakouts have led to increased selling pressure, pushing BTC back into the $100,000-$105,000 support zone, where it currently trades.

As Bitcoin struggles to maintain momentum, traders are closely following key indicators and technical levels to anticipate the next move in the market.

"The latest U.S. CPI data has been published and came in just below expectations, giving the market some optimism that inflation might be easing," Dr. Kirill Kretov from CoinPanel explains the current market dynamics. "However, macroeconomic uncertainty is still high. With the market's thin liquidity, even moderate players with enough capital could easily move prices against expectations."

Massive liquidations have amplified the downward pressure, with over $683.4 million in crypto futures liquidated within 24 hours. Long positions accounted for $617.85 million of these liquidations, demonstrating the extent of overleveraged bullish positions in the market.

Technical breakdown occurred as the total crypto market capitalization broke below the critical $3.35 trillion support level. This technical failure triggered algorithmic selling and stop-loss orders, creating additional downward momentum that affected all major cryptocurrencies.

However, the crypto market showed resilience as Bitcoin price recovered from lows of $101,000 to close the 24-hour period with a 0.7% decrease at $103,836.

On the other hand, Ethereum price had a similar pattern, testing highs of $2,878, its highest level in several months, before closing with a 1.6% loss at $2,720. The second-largest cryptocurrency is currently trading around $2,750, showing a 0.8% decline as it faces difficulty staying above key resistance levels.

In the intermediate term, Ethereum is showing signs of a potential recovery, having rebounded from lows of around $1,800 to reach highs close to $2,800 in the recent bull run.

However, pessimistic outlooks persist, with some analysts predicting a return to lows of $1,000 if macroeconomic headwinds worsen, especially considering the U.S. government's growing debt burden.

"We can confidently say we expect a continued sideways movement in digital asset prices for the short term, with expectation prices edge higher over the summer and beyond," adds Paul Howard from Wincent.

Analysts expect summer months to bring increased trading activity, further supporting ETH price predictions. In July, Ethereum is likely to hover between $2,900 and $3,000, nearing the psychological $3,000 mark.

In contrast, XRP price has faced consistent selling pressure, declining for three consecutive days and currently trading at $2.23, showing a 1.4% decrease.

Despite briefly touching $2.3368 during Wednesday's session, marking a two-week high, the token has failed to sustain its bullish momentum amid ongoing regulatory uncertainty.

Dogecoin price mirrors the broader market sentiment, initially rising above $0.20 before closing Wednesday's session with a 2.5% loss at $0.1934. The meme cryptocurrency continues its decline, falling an additional 1.5% to $0.19 on Thursday.

The primary catalyst stems from stalled U.S.-China trade negotiations, with Treasury Secretary Scott Bessent's confirmation damp