Crypto Today: Bitcoin, Ethereum, XRP stabilize at lower levels amid ETF outflows and macroeconomic risks

Meanwhile, Ripple (XRP) holds above $1.33 after three straight days of declines, reflecting growing headwinds due to macroeconomic uncertainty.

Bitcoin, Ethereum and XRP pressured ahead of US CPI report

Despite the current stable outlook, cryptocurrency prices have remained under pressure this week as investors weigh concerns about macroeconomic events ahead of the Federal Reserve’s (Fed) monetary policy decision.

The latest Bureau of Labor Statistics (BLS) data, released on Thursday, shows the United States (US) Producer Price Index (PPI) climbed 5.4% annually in August, narrowly surpassing market expectations of 5.3% and accelerating from July’s upwardly revised 4.8% gain.

Excluding food and energy, core PPI rose 4.6% YoY, in line with consensus and up from July’s revised 4.3% increase. On a monthly basis, the headline PPI edged up 0.4%, and the core PPI rose by 0.2%.

Meanwhile, market participants are awaiting the release of the US Consumer Price Index (CPI) report, which is an inflation indicator that directly influences the central bank’s policy direction.

A higher-than-expected CPI print would signal persistent inflationary pressures in the US economy, increasing the likelihood of an interest rate hike on Wednesday. Conversely, a softer-than-anticipated CPI reading would strengthen the case for an extended pause.