XRP Suffers Major Drop Amid Inflation Concerns

NEW YORK, NY — The cryptocurrency XRP experienced a significant drop in trading on Thursday, Aug. 14, 2025, following unsettling inflation news. This sharp decline coincided with a broader sell-off across major cryptocurrencies as investors reacted to the latest economic indicators.

XRP’s token price fell by 5.3% within 24 hours, reaching $3.08 as of 3:40 p.m. ET. This decline mirrored losses in Bitcoin and Ethereum, both of which saw decreases of 3.3% during the same period. The downturn was fueled by heightened concerns regarding interest rate cuts after the U.S. Bureau of Labor Statistics released its Producer Price Index (PPI) report for July, revealing inflation well above expectations.

The PPI showed an inflation rate of 3.7% for July, significantly higher than the anticipated 3%. This marked an increase from June’s rate of 2.6%, contributing to fears of a prolonged inflationary period. Analysts suggest that the findings may influence the Federal Reserve‘s decision-making regarding interest rates in its upcoming September meeting.

“With this inflation data, the likelihood of an interest rate cut diminishes,” said an economic analyst who requested anonymity. “This could have dire implications for investors banking on a bullish trend for cryptocurrencies.”

Many cryptocurrency investors had been optimistic, banking on lower interest rates to bolster their portfolios. XRP has already gained significantly this year amid hopes for forthcoming rate cuts. However, the July inflation report has raised alarm bells about ongoing price pressures within the economy.

Market observers noted that the impact of tariffs on inflation may only be beginning to surface, leading to concerns about accelerated price increases in the future. As the inflation trend evolves, it is likely to remain a key factor influencing cryptocurrency pricing and investor sentiment throughout the remainder of the year.