Bitcoin Plunges to Multi-Year Lows on Hot Inflation Data as XRP Ledger Flips Ethereum in Stablecoin Race

By Generational Wealth Investments | GenerationalWealth.biz

Bitcoin just absorbed one of its sharpest blows of the year — and the catalyst came straight from the macro data desk. A hotter-than-expected inflation print sent Bitcoin (BTC) tumbling to multi-year lows, dragging the broader crypto market into a risk-off spiral that wiped out nearly $1 billion in leveraged positions. Yet beneath the red candles, two stories quietly advanced that long-term investors can't afford to ignore: the XRP Ledger overtook Ethereum in a key stablecoin metric for the first time, and Kraken moved toward a major strategic stake in one of DeFi's flagship protocols.

Welcome to the Generational Wealth Community — your pathway from knowledge to legacy. We don't chase hype. We decode the market. Here's everything that moved, why it moved, and what it means for the sessions ahead.

What Sent Bitcoin to Multi-Year Lows?

It was a volatile Thursday for crypto, and the trigger was unmistakable: hotter-than-expected U.S. inflation data. The Personal Consumption Expenditures (PCE) index for May rose 4.1% year over year — its highest reading in years — reigniting fears that the Federal Reserve may keep interest rates elevated longer than markets had priced in, or even resume hiking.

That single data point reset sentiment across every risk asset. Bitcoin opened near $61,000, then quickly plunged 5% to a session low of $58,000 — its weakest level since September 2024. When the macro picture turns hostile, speculative assets feel the pressure first, and Bitcoin led the entire market lower.

By the close of U.S. trading, Bitcoin had clawed back modestly to trade around $59,400, as some dip buyers stepped in late in the session. But the damage to leveraged positioning was already done.

Nearly $1 Billion in Liquidations Flush the System

When Bitcoin moves 5% in hours, traders using borrowed capital to amplify their bets get wiped out — and that's exactly what unfolded here. Nearly $1 billion in positions were liquidated across the market in the past 24 hours, with the bulk coming from leveraged long bets and hundreds of millions tied directly to Bitcoin.

This is the cascade effect in action: as long positions are force-closed, they're sold into the market, pushing the price lower, which triggers the next wave of liquidations. It's a self-reinforcing feedback loop that explains why these moves feel so sudden and violent even when the underlying headline isn't catastrophic.

Adding to the selling pressure, spot Bitcoin exchange-traded funds saw meaningful investor outflows amid the risk-off mood. ETF flows have become a reliable read on institutional sentiment, and renewed outflows signal that even sophisticated capital is exercising caution at these levels — though that's far more likely a short-term risk management move than a structural reversal.

XRP Ledger Overtakes Ethereum in RLUSD Stablecoin Supply

Amid the broad weakness, the XRP ecosystem delivered a genuine utility milestone that had nothing to do with price.

Fresh on-chain data from the Ripple USD tracker shows the XRP Ledger has officially overtaken Ethereum as the largest host of RLUSD stablecoin supply for the first time. The XRPL now holds approximately $801 million of RLUSD, edging past Ethereum's $795 million, with total RLUSD supply approaching $1.6 billion.

This is no small footnote. After more than 18 months of Ethereum dominance in hosting this asset, the flip signals growing confidence in the XRP Ledger's infrastructure and its expanding real-world adoption. Utility milestones like this are precisely the kind of signal that gets buried under red price action — yet they're often the developments that matter most over a multi-year horizon.

Kraken Eyes a 15% Stake in Aave Group

DeFi generated its own standout headline against the bearish tape. Reports emerged that major exchange Kraken is in advanced talks to acquire a 15% equity stake in Aave Group at a $385 million valuation. The proposed structure involves a substantial Ether investment in exchange for AAVE tokens and an ownership interest in the protocol.

The market response was immediate. The AAVE token surged more than 13% even as most of the market bled red — a textbook example of how strategic institutional interest can manufacture standout strength during broader weakness. When a tier-one exchange is willing to write a nine-figure check into a DeFi protocol, it tells you where smart money sees durable value.

How the Rest of the Market Held Up

The macro-driven selloff left few corners untouched. Ethereum (ETH) slipped roughly 2.9% to around $1,560. Solana (SOL) traded near $66. XRP held around $1.07, finding relative stability even as the broader crypto market absorbed the weight of the inflation shock.

What This Means for Your Portfolio Right Now

Today's action is a masterclass in how quickly macro data can shake sentiment and flush leverage out of the system. Volatile shakeouts like this are a feature of crypto markets, not a bug — they clear out weak hands, reset overheated positioning, and often create the conditions for stronger hands to accumulate at better prices.

At the same time, the session underscored a principle we return to constantly: meaningful utility and adoption stories keep progressing regardless of short-term price swings. The RLUSD supply shift onto the XRP Ledger and Kraken's move on Aave didn't wait for a green day to develop.

The key questions to carry into the coming sessions:

• Can buyers defend these multi-year support levels, or does the market need to flush lower before finding a floor?

• Are ETF outflows a temporary pause or the start of a trend?

• Is the macro environment — inflation, interest rates, risk sentiment — stabilizing or escalating?

Until those resolve with more clarity, risk management is paramount. That means appropriate position sizing, no over-leveraging, and a clear plan in place before volatility forces your hand. At Generational Wealth Investments, we talk about how you spend your million-dollar hours — and reactive, emotion-driven decisions during shakeouts are one of the most costly ways to spend them. Stay grounded, stay informed, and let the market data tell the story.

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⚠️ Educational Disclaimer: This content is produced by Generational Wealth Investments for educational and informational purposes only. Nothing here constitutes financial or investment advice. Cryptocurrency is highly volatile. Never invest more than you can afford to lose. Always conduct your own research and consult a licensed financial professional before making investment decisions.