Crypto Market Drops 2 Percent As US Inflation Sparks Fear

The crypto market fell 2.18 percent to a total value of $2.62 trillion following the release of hotter than expected United States inflation data. Bitcoin dropped below the $77,000 level, while Ethereum slipped toward $2,470 and XRP traded near $1.38.

This sudden market pullback came after an August producer inflation report revived worries that the Federal Reserve might raise interest rates again. Along with inflation concerns, rising oil prices and a wave of leveraged trader liquidations added heavy downward pressure across the board.

Traders are watching economic updates very closely right now. More macro data could trigger extra volatility in the coming days as the market reacts to shifting monetary policy expectations.