Crypto Market Shaken by Surprise Inflation Surge

As of August 14, 2025, the crypto market has been on a rollercoaster ride. Ethereum, the world's second-largest cryptocurrency, has been hovering near all-time highs but has seen a 4% drop in the past 24 hours, currently trading at around $4,500.

Despite this recent pullback, Ethereum's price has soared by almost 50% over the past month, showcasing the token's impressive performance. However, the broader crypto market has not been immune to the volatility, with the total market capitalization dropping nearly 4% in a single day to around $4.07 trillion.

The volatility in the crypto space has been driven by a mix of factors. Earlier this week, Bitcoin experienced a surge in price following optimism about the prospect of interest rate cuts by the Federal Reserve in September. This optimism was fueled by a report from the Bureau of Labor Statistics indicating only a moderate increase in inflation in July.

But on Thursday, the same bureau reported a worrying 0.9% increase in producer prices in July, the biggest jump since June 2022. This news has spooked the crypto market, leading to a pullback in prices. Analysts have described Bitcoin's recent movements as a "classic bout of profit-taking, amplified by macro jitters."

Despite the current volatility, the crypto market remains near all-time highs, with the total market capitalization continuing to hover over the $4 trillion mark, a milestone it crossed for the first time in July 2025 amid a broader boom in the stock market and crypto-friendly policies.