The crypto market is once again facing a downturn, with major digital assets like Bitcoin, Ethereum, XRP, and Dogecoin showing red on the charts. While a softer-than-expected U.S. inflation report gave traders some initial hope, that optimism was short-lived as prices quickly pulled back.
So, why is crypto going down today? Let’s break it down.
Inflation Data Sends Mixed Signals
On June 12, 2025, U.S. CPI (Consumer Price Index) data showed inflation at 2.4%—slightly lower than the forecasted 2.5%. Initially, this sparked a positive reaction, pushing Bitcoin briefly above $110,000. But the rally didn’t last. Bitcoin soon fell back and is currently hovering near $107,600.
Ethereum also followed a similar path, jumping to $2,878 before closing lower at $2,720. As of now, ETH is trading around $2,750—still under pressure from resistance levels.
Dogecoin and XRP weren’t spared either. XRP slid to $2.23 despite touching a two-week high earlier. Dogecoin dropped over 2.5% and continues to struggle around the $0.19 mark.
What’s Causing the Drop in Crypto Prices?
The drop isn’t just about inflation numbers. A combination of macroeconomic uncertainty and geopolitical issues is shaking investor confidence:
- Stalled U.S.-China trade talks: Treasury Secretary Scott Bessent confirmed the slowdown, which dampened global risk appetite.
- Concerns about U.S. debt: Despite lower inflation, rising debt levels have traders worried about future economic stability.
- Market liquidity: Thin liquidity in the crypto market means even moderate trades can cause big price swings.
Additionally, the market saw massive liquidations—over $683 million in the past 24 hours—with long positions (bets that prices would go up) making up over $617 million of those losses.
Will Bitcoin and Ethereum Prices Recover?
Despite the current correction, analysts remain cautiously optimistic.
- Bitcoin is expected to trade between $100,000 and $120,000 in the near term, with bullish predictions targeting as high as $150,000–$250,000 by the end of 2025.
- Ethereum might retest the $2,800–$3,000 range this summer, especially if broader market sentiment improves.
XRP and Dogecoin: What’s Next?
XRP’s price movement could depend heavily on the upcoming court ruling in the Ripple vs. SEC case, expected on June 16. A favorable outcome might push XRP toward $0.80, while a negative verdict could send it down to $0.45.
Dogecoin, meanwhile, continues to struggle with downward momentum. Analysts say it may test support at $0.15 unless a major breakout occurs.
Is It Still Worth Investing in Crypto?
Yes—but with caution. Crypto remains a high-risk, high-reward investment. According to surveys, over 70% of U.S. crypto holders plan to keep investing this year, confident in long-term growth. The key is managing risk and focusing on projects with strong fundamentals.
Final Thoughts
Volatility is nothing new in crypto. While the current dip may feel discouraging, it’s part of the market cycle. With inflation cooling slightly and long-term investor interest still strong, the second half of 2025 could bring new opportunities for growth.
