Ethereum, XRP, PI fall as US PPI inflation reaches 6.5%
Ethereum (ETH), XRP, and Pi Network fell on Nov. 13 as US producer inflation rose 6.5% annually, with ETH below $2,000 and XRP near $1. Analysts highlighted key support levels for ETH at $1,900 and $1,500, while XRP faced downside risks to $0.80. PI Network showed potential for a breakout above $0.0735, according to analysts.
How this was made
The 30-second read
Why it matters
The inflation reading reinforced risk‑off sentiment, triggering a sell‑off across major cryptocurrencies and prompting analysts to highlight technical support levels.
Market read
US inflation data directly impacted crypto prices, with ETH and XRP showing notable declines, indicating heightened market sensitivity to macro risk factors.
What to watch
Liquidity crunch in spot crypto ETFs and large Bitcoin liquidations may amplify price moves beyond the macro signal.
Background
The US Producer Price Index (PPI) for October rose 0.3% month‑over‑month, annualizing to 6.5%, the highest since November 2022. The data was slightly softer than forecasts but kept inflation expectations elevated.
Ticker impact
Ethereum fell below $2,000 after US PPI data showed 6.5% annual inflation, pressuring crypto markets.
likely pressure as traders price in higher inflation risk
The macro inflation surprise, even if modest, typically hurts risk assets like ETH, and analysts already flag support at $1,900.
XRP traded near $1 after the same US PPI release, with analysts noting a break of resistance and a move toward $0.99 support.
likely pressure as broader crypto sell‑off extends to XRP
Inflation‑driven risk aversion and technical support at $0.99 suggest further downside if support fails.
Market effects
Higher US inflation adds pressure to risk assets, especially crypto, potentially spilling into broader tech equities.
US‑centric inflation data influences global crypto sentiment, with Asian markets already showing weakness.
Macro inflation data is a key driver for global risk appetite, affecting crypto and related tech stocks worldwide.
Counterpoint
If inflation eases further in upcoming reports, crypto could rebound quickly, making current dips a buying opportunity.
Key entities
- government_agencyU.S. Bureau of Labor Statistics
Released the October PPI data.
- cryptocurrencyEthereum
Price fell below $2,000 amid inflation‑driven risk aversion.
- cryptocurrencyXRP
Trading near $1, pressured by the same macro data.
