Crypto Markets Drop Ahead of U.S. Inflation Data

Cryptocurrency stocks reversed premarket losses.

By: Mehab Qureshi Loading...

 large, downward-trending arrows and plummeting bar graphs

Crypto markets fell on Tuesday morning as traders braced for fresh macroeconomic data from the United States.

The Producer Price Index (PPI) for April rose by 0.5%, more than the estimated 0.2% The report comes ahead of the Consumer Price Index (CPI) data on Wednesday.

Bitcoin (BTC) is trading at $61,689 — down 2% in the last 24 hours. Ether (ETH) dropped nearly 3%, while Solana is down 4%.

A surge in GameStop (GME) stock triggered a rally in meme coins on Monday. A post by RoaringKitty, an investor, analyst, and influencer known for his role in the GME short squeeze of 2021, sent the video game retailer's stock soaring. GME stock has nearly tripled in the past two days.

GME Stock Price chart
GME Stock Price

Several offshoots and joke tokens referring to GameStop, Gill, and his online kitten persona flooded the Solana and Ethereum blockchains, with a meme GME token surging as much as 1500%.

PEPE soared 30% as Dogecoin (DOGE) jumped 3.5% in the last 24 hours, while Shiba Inu (SHIB) and FLOKI rose 2% and 12%, respectively.

Crypto stocks rise

Cryptocurrency and blockchain-related stocks rallied on Tuesday. Coinbase Global (COIN) rose 1.6%, while mining companies Riot Platforms (RIOT) and Marathon Digital (MARA) soared over 3%. MicroStrategy (MSTR) gained 2.6%.

The ProShares Bitcoin Strategy ETF (BITO) dropped 3%.

US stocks remained relatively stable on Tuesday as traders await tomorrow’s inflation figures, which will influence the Federal Reserve’s next policy move. The S&P 500 and Nasdaq rose 0.1%.