Bitcoin and Ether Gain as Broader Market Fizzles, OM Craters

Major cryptocurrencies recorded modest gains on Monday after President Trump exempted smartphones and computers from ‘reciprocal’ tariffs over the weekend, supported by last week's better-than-expected Producer Price Index (PPI) and Consumer Price Index (CPI) data, which signaled easing inflation.

Bitcoin (BTC) is up 0.2% over the past 24 hours, trading at around $84,200. Ethereum (ETH) climbed 2.5% to $1,630, while XRP dipped 1.8% to $2.12. Solana (SOL) was flat at $129.

The overall cryptocurrency market capitalization decreased by 2% to $2.75 trillion, according to CoinGecko. In the past 24 hours, 153,654 traders were liquidated, with total liquidations approaching $367 million. BTC led with $89 million, followed by Mantra (OM) with $82 million, according to CoinGlass.

Cooling Inflation

“Bitcoin has reclaimed the $84,000 level after a strong rebound from the recent low near $74,500, supported by growing optimism that the Federal Reserve may begin its interest rate cutting cycle later this year,” said Linh Tran, a market analyst at XS.com. “The main catalyst for this rally stems from the March PPI and CPI data, which showed clear signs of easing inflationary pressure in the US.”

CPI came in at 2.4%, below both expectations and the previous month's reading. Adding to the surprise, last Friday’s PPI showed a 0.4% decline, contrasting analyst forecasts of a 0.2% increase.

“These developments have strengthened expectations that the Fed may conduct at least two rate cuts in 2025, with the first possibly occurring as early as September,” Tran said. “This is a key factor in reducing capital costs and boosting investor sentiment toward risk assets such as equities and cryptocurrencies.”

Mantra Crash

Mantra, a Layer 1 blockchain focused on real-world assets (RWA), experienced a dramatic crash of its OM token on Sunday, with the price plunging 93% within minutes—from $5.50 to a low of $0.35. Although the token has rebounded slightly to $0.57, it remains down 91% over the past 24 hours.

Mantra’s co-founder JP Mullin stated on X: “We have determined that the OM market movements were triggered by reckless forced closures initiated by centralized exchanges on OM account holders.”

Mullin added that the timing and depth of the crash suggest that “a very sudden closure of account positions was initiated without sufficient warning or notice.”

Fund Flows

CoinShares data found that digital asset investment products recorded $795 million in outflows last week. This extends the losing streak to a third consecutive week and brings total outflows since early February to $7.2 billion — nearly erasing all year-to-date inflows.

Bitcoin led with $751 million in outflows, though it still holds $545 million in YTD gains. Ethereum followed with $37.6 million in outflows. A few altcoins bucked the trend, with XRP pulling in $3.5 million.

CoinShares attributed the outflows to increasing investor uncertainty, driven by President Donald Trump’s frequently changing trade tariff policies.