Cryptocurrency Market Slips as Inflation Fears Resurface Ahead of Crypto Summit

The cryptocurrency market posted mild losses on Friday, just hours before President Donald Trump’s White House Crypto Summit, as today’s macroeconomic data rekindled concerns about rising inflation.

Bitcoin (BTC) dropped 1% in the past 24 hours, trading at $87,500, while Ethereum (ETH) fell 1.1% to $2,164. XRP plunged 4.2% to $2.45, and Solana (SOL) was flat at $144, according to CoinGecko.

The cryptocurrency market plunged by 2.3% over the past day, bringing its total market capitalization to $3 trillion.

During this period, more than 162,000 traders were liquidated for a total of nearly $575 million. BTC accounted for $298 million in liquidations, while ETH followed with $74 million, according to CoinGlass data. Altcoins contributed to $39 million in liquidations.

Inflation Fears

Experts noted that today's market volatility was partly due to the February US jobs report, which raised concerns about inflation and economic instability.

February’s job report shows the US economy added only 151,000 jobs, lower than the expected 170,000, with the unemployment rate rising slightly to 4.1% as federal layoffs and hiring freezes continue.

“Markets will likely react particularly adversely to a downside surprise, which will do nothing at all to allay ongoing growth jitters,” said Michael Brown, a Senior Research Strategist at Pepperstone.

Trump’s Crypto Summit

Another factor contributing to the volatility is Trump’s looming Crypto Summit, set to be held today at 1 pm EST.

“The outcomes could significantly influence the regulatory landscape and institutional sentiment toward digital assets,” said Ryan Lee, Chief Analyst at Bitget Research.

Lee noted that a successful summit could see Bitcoin reclaim $100,000, with other crypto assets like ETH, XRP, and Solana soaring, reinforcing the US's leadership in global crypto markets.

“Conversely, a lack of actionable steps might disappoint investors, underscoring the high stakes of this event,” he added.

The summit comes on the heels of President Trump’s recent executive order to establish a U.S. Strategic Bitcoin Reserve.

The president plans to use tokens already owned by the government, which currently total around 200,000 Bitcoins, or $18 billion. These were seized through criminal or civil asset forfeiture proceedings.