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XRP has been attempting a rebound amid short-term volatility, reacting sensitively to macroeconomic variables immediately after signals of easing U.S. inflation were detected.
According to cryptocurrency-focused outlet U.Today on February 14 (local time), the U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) for January rose 0.2% month-over-month, below the market expectation of 0.3%. On an annual basis, inflation slowed to 2.4%, marking one of the lowest levels in the past five years.
Immediately following the CPI release, XRP briefly fell 0.95% due to algorithmic trading activity but later attracted buying pressure, successfully rebounding 2.29% from its intraday low. Market participants interpret the move as reflecting expectations that moderating inflation could create a favorable environment for risk assets overall.
However, analysts note that the key variable is not the inflation data itself but the market’s reassessment of the Federal Reserve’s policy reaction function. Among institutional investors, speculation has recently emerged that the Fed may tolerate a higher long-term inflation range of 2.5% to 3.5% rather than risk a recession in pursuit of its 2% target.
If the “higher-for-longer” rate framework materializes, both high-beta assets such as XRP and tangible assets like gold could be reevaluated in line with changes in real interest rates. Market attention has now shifted to the Federal Reserve’s Beige Book report on economic conditions, scheduled for release on March 4.
Currently, XRP is exhibiting a macro-linked range-bound pattern, responding sensitively to major economic events. Whether it can defend key support levels is expected to serve as a decisive inflection point for its short-term trend.
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