XRP Slips as Investors Await Inflation Data This Week

XRP continues to experience modest declines as the broader crypto market adjusts to ongoing macroeconomic uncertainty and ahead of this Friday’s key inflation report. Alongside Dogecoin, XRP fell by roughly 2.5% over the past 24 hours, signaling cautious movement rather than a firm recovery in digital asset markets.

The latest downturn follows heightened geopolitical tension, particularly after former U.S. President Donald Trump proposed a steeper import tariff on European goods. Originally at a proposed 20%, Trump suggested raising tariffs to as much as 50%, which rattled markets late last week.

Market participants found some relief when news broke that the new tariffs would be delayed. According to Jeffrey Ding, chief analyst at HashKey Group, Bitcoin’s partial rebound reflected optimism among traders sparked by this policy delay. Ding highlighted that MicroStrategy founder Michael Saylor’s hints at new Bitcoin acquisitions also bolstered market sentiment, potentially laying the groundwork for a broader bounce.

On Monday, stability began to return after Trump announced that the tariff decision would be postponed to July 9 following a “constructive call” with European Commission President Ursula von der Leyen. However, traders remained on edge, as analysts warn that unpredictable government policies can swiftly destabilize calm markets.

Singapore-based QCP Capital emphasized this warning in a market update, stating that while volatility has compressed recently, the potential for sharp swings remains. Specifically, the spread in implied volatility between July and June Bitcoin options—known as the vol spread—had spiked but has since dropped below one. This suggests traders remain alert for fresh market-moving developments as the new tariff deadline approaches.

Attention now turns to this Friday’s forthcoming Core Personal Consumption Expenditures (PCE) report, which serves as a barometer for inflation used by the U.S. Federal Reserve. The Core PCE excludes volatile food and energy prices, offering a more stable measure of underlying inflation trends. The reading will be closely watched to assess whether the Fed may tweak monetary policy based on how inflation evolves.

Despite recent price softness in assets like XRP and Dogecoin, institutional interest in crypto appears robust. BlackRock’s spot Bitcoin ETF, IBIT, has reportedly secured 30 consecutive days of net inflows, a rare achievement that highlights growing confidence from large investors.

Still, QCP Capital pointed out that the crypto market’s resilience is relative. While digital assets like XRP are weathering macro tremors better than some traditional equities, risk appetite appears to be retreating in conventional financial instruments. Specifically, products such as the TQQQ—a leveraged Nasdaq ETF—are showing waning investor interest, suggesting a cautious stance among broader market participants.

Related: Expert Advice: Sell XRP If You’re Confused

“In a world of erratic policymaking,” wrote QCP, “crypto increasingly looks like the grown-up at the table.” This sentiment captures how digital assets like XRP are emerging as relative safe havens amid political and economic volatility, even as short-term price action reflects investor profit-taking.