Crypto Market Woes Deepen as Inflation Fears and ECB Rate Hike Bite

The global cryptocurrency market suffered a significant decline in value over the past 24 hours, with a total market cap drop of 3.0% to $2.71 trillion.

The biggest losers were Ethereum and XRP, which plummeted by around 5% each to $2,438.53 and $1.36 respectively, while Solana also took a hit, falling to exactly $100.00.

BTC, on the other hand, managed to hold its ground relatively steady at $77,285.98, although it still posted a 3.0% loss.

The catalyst for this selloff was the release of hot inflation data from Washington, which showed that the US Producer Price Index came in at 5.4%, above the forecasted 5.3%. This sparked concerns about inflation and led to a broader market selloff, with gold and silver losing $490 billion in value within an hour.

The European Central Bank also raised interest rates by 25 basis points to 2.65%, adding to the tightening narrative that is weighing on risk assets worldwide.