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The crypto market tumbled 2% amid confusing comments by Treasury Secretary Scott Bessent and hotter-than-expected US Producer Price Index data for July, sending Bitcoin, Ethereum and XRP lower.
After touching a new all-time high (ATH) of $124,128 just a day ago, the BTC price dropped 2.4% in the past 24 hours to trade at $118,793 as of 5:55 a.m. EST.
ETH fell 1.8%, taking a breather from its recent soaring rally to trade at $4,635, while XRP tumbled 3.7% to $3.12.
CoinGlass data shows over $932 million was liquidated in the last 24 hours.
Crypto Prices Tumble After Troubling US PPI Report
The July Producer Price Index (PPI) rose 0.9%, way above analyst expectations. Core PPI, which does not include food and energy, also surged 0.9%, soaring past the expected 0.2%.
That shook investors, who fear it reduces the odds that the Federal Reserve will cut interest rates in September.
CRYPTO PRICES FALL AFTER U.S. PPI DATA
Cryptos fell after stronger-than-expected U.S. wholesale inflation data reduced hopes for a Fed rate cut in September, FP Markets’ Aaron Hill says. July’s producer price index rose 0.9% vs. a 0.2% forecast, reviving inflation fears and…
— *Walter Bloomberg (@DeItaone) August 14, 2025
With inflation concerns reignited, risk assets tumbled.
Meme coins led losses, dropping 6.2% in the last 24 hours to a $77.8 billion market capitalization.
Floki (FLOKI), Conflux (CFX), and Dogwifhat (WIF) are the biggest losers, each recording plunges of about 7%, according to data from CoinMarketCap.
The top performers among the the largest cryptos were Aerodrome (AERO), Hyperliquid (HYPE), and Pendle (PENDLE), posting 10%, 5.9%, and 5.6% gains, respectively.
BNB Smart Chain’s Total Value Locked (TVL) rose 1% to $7.2 billion, with BNB hitting an ATH of $866.96 despite a 2% daily drop, fueled by a meme coin surge led by Wiki Cat (WKC), up 258% weekly, according to CoinGecko data.
The broader market cap remains near above $4 trillion, driven by crypto-friendly policies under Trump.
Bessent’s Bitcoin U-Turn Adds Uncertainty
Some of the red ink was caused by Treasury Secretary Scott Bessent, who said that the US would not purchase Bitcoin for its planned strategic reserve. But then he had a change of heart, taking to X to reverse his stance.
While BTC seized by the federal government will serve as the foundation of the reserve established under Trump, “Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world,’” Bessent said.
Bitcoin that has been finally forfeited to the federal government will be the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order.
In addition, Treasury is committed to exploring budget-neutral pathways to acquire more…
— Treasury Secretary Scott Bessent (@SecScottBessent) August 14, 2025
Bitcoin advocate Senator Cynthia Lummis backed Bessent’s revised position, and proposed that the US could revalue its gold reserves to fund further Bitcoin accumulation.
“We cannot save our country from $37T debt by purchasing more bitcoin, but we can revalue gold reserves to today’s prices & transfer the increase in value to build SBR,” she said.
.@SecScottBessent is right: a budget-neutral path to building SBR is the way. We cannot save our country from $37T debt by purchasing more bitcoin, but we can revalue gold reserves to today’s prices & transfer the increase in value to build SBR.
America needs the BITCOIN Act.
— Senator Cynthia Lummis (@SenLummis) August 14, 2025
Bullish Signals Persist Amid Pullback
Despite the downturn, bullish sentiment remains. Spot Bitcoin ETFs saw $230.8 million in net inflows on August 14, led by BlackRock’s IBIT with $523.7 million, per Coinglass.
Ethereum ETFs recorded $639.6 million in inflows, driven by BlackRock’s ETHA at $519.7 million, marking eight consecutive days of gains.
The BTC price on the daily chart shows a strong bullish trend, trading within a rising channel pattern. Bitcoin price is above both the 50-day ($115,062) and 200-day ($99,983) Simple Moving Averages (SMAs), confirming bullish momentum.
The Relative Strength Index (RSI) is neutral at 54.87, suggesting room for further upside without being overbought.
ETH is also on a sustained bullish trend, with the asset far above both the 50-day ($3,410) and 200-day ($2,552) SMAs. RSI is overbought at 72.21, signaling strong momentum. Ethereum is edging closer to its November 2021 ATH of $4,878.
Opportunistic Buying and Market Resilience
The dip attracted buyers, with BitMEX co-founder Arthur Hayes purchasing over $16 million in crypto, including HYPE, Lido (LDO), and Ethena (ENA) in the past five days, according to Lookonchain.
Arthur Hayes(@CryptoHayes) bought more $HYPE, $LDO, and $ENA today.
Over the past 5 days, Arthur Hayes has purchased a total of 1,750 $ETH($7.43M), 58,631 $HYPE($2.62M), 3.1M $ENA($2.48M), 1.29M $LDO($1.83M), 184,610 $PENDLE($1.02M), and 420,000 $ETHFI($516.6K).… pic.twitter.com/dyy6nDxTer
— Lookonchain (@lookonchain) August 15, 2025
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