Ripple falls below $1.30 as inflation data spooks crypto markets

Ripple (XRP) dropped below the $1.30 threshold to trade at $1.29 on Thursday, following a wave of liquidations across the cryptocurrency market triggered by higher-than-expected US inflation data. The decline was driven by a surge in US Treasury yields and the dollar index after September Consumer Price Index figures showed year-over-year inflation rising to 3.7%, exceeding the 3.6% forecast.

The hot inflation print initially increased market expectations for a Federal Reserve rate hike, with the probability of a 25-basis-point increase jumping from 21.6% to 32.7% according to CME FedWatch data. However, subsequent comments from Fed officials, including Chicago Fed President Austan Goolsbee and San Francisco Fed President Mary Daly, suggested a preference for waiting for more data, causing the probability of a rate hike to fall back to 29.3% and the likelihood of rates remaining unchanged to recover to 70.7%.

Read the full story at tradingkey.com.