A slightly cooler-than-expected U.S. inflation reading initially boosted cryptocurrency prices but ultimately led to a market correction.

In effect, the cryptocurrency market continues to navigate turbulent waters in June 2025, with major digital assets experiencing significant price movements amid shifting macroeconomic conditions. Bitcoin price fluctuations, Ethereum price volatility, XRP price corrections, and Dogecoin price swings have captured retail traders’ attention as they seek to understand the underlying factors driving these market dynamics.

Why Is Crypto Down? This article explores the key factors behind the recent market decline, while also presenting the latest expert price predictions and insights from technical analysis.

Bitcoin Price Falls Today, Weighing on Ethereum, XRP and Dogecoin

The crypto landscape has shown mixed signals during the last 24-hour window. Bitcoin price initially surged above $110,000 following cooler-than-expected U.S. Consumer Price Index (CPI) data, but subsequently retreated to close at $106,687, marking a 1.4% decline. The flagship cryptocurrency continues trading around $107,634 as of Thursday, maintaining its position as the market leader despite ongoing volatility.

Ethereum price action has been similar, with ETH testing the $2,878 level on Wednesday, its highest point in several months, before closing 1.6% lower at $2,720. The second-largest cryptocurrency by market capitalization is currently trading near $2,750, representing a 0.8% decline as it struggles to maintain momentum above key resistance levels.

Why is crypto going down today? Source: CoinMarketCap.com

XRP price has faced consistent selling pressure, declining for three consecutive days and currently trading at $2.23, down 1.4%. Despite briefly touching $2.3368 during Wednesday’s session, a two-week high, the token has failed to sustain its bullish momentum amid ongoing regulatory uncertainty.

Dogecoin price mirrors the broader market sentiment, initially rising above $0.20 before closing Wednesday’s session with a 2.5% loss at $0.1934. The meme cryptocurrency continues its decline, falling an additional 1.5% to $0.19 on Thursday.

Why Is Crypto Down? Mixed Impact of U.S. CPI Reading

The primary catalyst stems from stalled U.S.-China trade negotiations, with Treasury Secretary Scott Bessent’s confirmation dampening investor sentiment and triggering risk-off behavior globally.

The U.S. inflation reading released on Wednesday also played a role. Although the cryptocurrency market initially reacted positively to the Consumer Price Index (CPI) report, showing annual inflation at 2.4%, slightly below the expected 2.5%, investors remain cautious due to ongoing concerns over the growing debt burden of the U.S. government.

Source: BLS.gov

“The latest U.S. CPI data has been published and came in slightly cooler than expected, giving the market some optimism that inflation might be easing,” Dr. Kirill Kretov from CoinPanel explains the current market dynamics. “However, macroeconomic uncertainty is still high. With the market’s thin liquidity, even moderate players with enough capital could easily move prices against expectations.”

Massive liquidations have amplified the downward pressure, with over $683.4 million in crypto futures liquidated within 24 hours. Long positions accounted for $617.85 million of these liquidations, demonstrating the extent of overleveraged bullish positions in the market.

Technical breakdown occurred as the total crypto market capitalization broke below the critical $3.35 trillion support level. This technical failure triggered algorithmic selling and stop-loss orders, creating additional downward momentum that affected all major cryptocurrencies.

Bitcoin Price Predictions: Expert Analysis and Forecasts

Bitcoin price predictions for June 2025 remain cautiously optimistic despite recent volatility. Leading analysts suggest a trading range between $100,000 and $120,000 as BTC consolidates above key exponential moving averages while maintaining its bullish long-term structure.

Multiple forecasting models present varying scenarios for Bitcoin’s trajectory. Bitfinex analysis targets $115,000 by early July 2025 in bullish scenarios, while Tom Lee from Fundstrat presents perhaps the most aggressive outlook, targeting $150,000 to $250,000 by year-end.

Why is Bitcoin price going down today. Source: Tradingview.com

The supply-demand dynamics supporting these projections remain compelling. Bitwise research indicates that 95% of all Bitcoin has been mined, yet 95% of the world doesn’t own Bitcoin. This massive imbalance suggests enormous potential for price appreciation as adoption accelerates.

Changelly’s technical analysis forecasts Bitcoin reaching $123,000, representing a 12% increase from current levels.

Related: How High Can Bitcoin Go? Experts’ BTC Price Predictions Eye $125K in June and $150–200K by Year-End 2025

Ethereum Price Outlook And Summer Rally Expectations

Ethereum price predictions for June 2025 indicate potential recovery toward the $2,800-$2,900 zone if bullish momentum revives mid-month. Downside risk persists to $2,280, especially if macro sentiment weakens further.

However, my technical analysis indicates that Ethereum has managed to break out of the consolidation range that persisted between May and June, with the upper boundary near $2,730. This breakout suggests that, from a medium-term perspective, the cryptocurrency may have room for further gains.

Why is Ethereum price going down today. Source: Tradingview.com

“A small positive for cryptocurrencies as the CPI data was just below expectations,” Paul Howard from Wincent provides measured commentary. “We can confidently say we expect a continued sideways movement in digital asset prices for the short term, with expectation prices edge higher over the summer and beyond.”

Analysts expect summer months to bring increased trading activity, further supporting ETH price predictions. In July 2025, Ethereum is likely to hover between $2,900 and $3,000, nearing the psychological $3,000 mark.

XRP, Dogecoin And Altcoin Market Dynamics

XRP price faces critical catalysts in June 2025, with the Ripple lawsuit outcome expected on June 16 serving as a major market driver. If the legal proceedings end favorably with manageable penalties or clear regulatory distinction for XRP, analysts anticipate renewed buying pressure.

Current forecasts suggest XRP could break above $0.65 and rally toward $0.80 or higher in favorable scenarios. However, negative court or regulatory news could push the token down to primary support around $0.45.

Why is XRP price going down today. Source: Tradingview.com

You may also like: XRP’s Weekend Gain and Bullish Flag Pattern Support 50% Jump Prediction

From a technical standpoint, Dogecoin appears to be the weakest among major cryptocurrencies. The $0.25 level is acting as strong resistance, while a downward trendline continues to push the price lower. As a result, a move toward the $0.15 area now seems more likely.

Why is Dogecoin price going down today. Source: Tradingview.com

Crypto News, FAQ

Why Is Crypto Down Now?

The cryptocurrency market is experiencing downward pressure in June 2025 due to several interconnected factors creating a perfect storm of selling sentiment. Stalled US-China trade negotiations have emerged as the primary catalyst, with Treasury Secretary Scott Bessent confirming that talks are “a bit stalled,” triggering risk-off behavior among investors. This geopolitical uncertainty has historically impacted cryptocurrency prices due to their strong correlation with risk assets.

Why Is the Crypto Market Falling?

The crypto market’s current decline reflects a combination of macroeconomic uncertainty and reduced investor demand. Bitcoin’s bearishness follows waning demand after its run to all-time highs above $111,000, with demand metrics reaching levels historically associated with market tops. Bitcoin’s 30-day demand growth reached 229,000 BTC on May 28, near the previous demand growth peak of 279,000 BTC that marked the market top in December 2024.

Will Crypto Rise Again?

Yes, historical patterns and fundamental analysis strongly suggest crypto will recover and rise again in 2025. The cryptocurrency market has demonstrated remarkable resilience through previous crashes in 2013, 2018, and 2022, each time emerging stronger and more mature. Several factors support a bullish recovery outlook for the remainder of 2025.

Is It Still Worth Investing in Crypto?

Yes, it remains worth investing in cryptocurrency, but with important caveats regarding risk management and portfolio allocation. 73% of U.S. crypto holders plan to continue investing in cryptocurrency in 2025, signaling strong long-term confidence in the market. This trend spans across income levels, with both higher-income and lower-income groups citing established coins as the most appealing investment option.