XRP Loses $10 Billion in One Day Despite Ripple’s Legal Victory

In just a matter of hours on Thursday, August 14

XRP’s market capitalization dropped from $192.28 billion to $182.73 billion, erasing nearly $10 billion in value. The token is trading at $3.13 at the time of writing, down 3.88% on the daily chart, although it’s still up 2.47% this week following Ripple’s legal victory, according to CoinMarketCap.

Market Reaction

Hardly an isolated incident, it appears that the drop was largely a consequence of the U.S. Government’s newly reported inflation data showing the highest increase percentage since June 2022.

U.S. Risk Assets

Multiple U.S. risk assets tumbled today as new inflation data led to fresh concerns regarding Federal Reserve cuts. The July Producer Price Index (PPI) jumped 0.9% since June, well above the 0.2% forecast. On a year-over-year basis, it rose 3.3%, also above 2.5% expectations and June’s 2.4%. Core PPI, which strips out food and energy, also surged 0.9%, surpassing the 0.2% consensus. Annual core Consumer Price Index (CPI), on the other hand, climbed to 3.7% from June’s 2.6%, beating the general forecasts of 2.9%.

Impact on Other Cryptocurrencies

Bitcoin (BTC), which saw a new all-time high of over $124,000, plunged below $119,000 on the same day. Similarly, Solana (SOL) dropped 6.37% from $204 to $191.

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