Leading cryptocurrencies fell alongside stocks on Thursday as a jump in consumer prices dampened hopes of interest rate cuts.  

What Happened: Bitcoin tumbled to an intraday low of $114,369.87, prompting a broader market decline. Ethereum sank below $3,700.

Bullish long traders were heavily hit by the slump, with over $570 million in long positions wiped out in the last 24 hours.

That said, the two cryptocurrency heavyweights recorded a profitable July. While Bitcoin rose nearly 8% in the month, Ethereum skyrocketed over 48%.

Bitcoin's open interest fell by 0.86% in the last 24 hours, while funds locked in Ethereum unsettled contracts dropped 1.83%. 

The "greed" sentiment weakened further in the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $3.78 trillion, contracting 2.33% in the last 24 hours.

Stocks closed lower on Thursday. The Dow Jones Industrial Average dropped 330.30 points, or 0.74%, to end at 44,130.98. The S&P 500 dipped 0.37%, ending at 6,339.39. The tech-focused Nasdaq Composite lost 0.03% to finish at 21,122.45.

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The Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge, jumped to 2.6% year-over-year, up from 2.3% in May and topping expectations of 2.5%, casting doubt on the future of rate cuts this year.

Investors have been anxious following Federal Reserve Chair Jerome Powell’s hawkish tone after the central bank's July policy meeting.

See More: Best Cryptocurrency Scanners

Analyst Notes: Widely followed cryptocurrency analyst and trader CW suggested that the retail demand for Bitcoin was on the rise.

"Transfer volumes have bottomed out and are gradually increasing. Transfer volume remains low, but growing demand from retail investors is a positive sign," the analyst said. "If they return to the market in earnest, the BTC rally will continue."

Another popular cryptocurrency analyst, Michaël van de Poppe, predicted that Ethereum may peak around $4,000 in the short term, followed by a brief pullback.

"Things are building up for a perfect bull market for the coming 12-24 months on altcoins," Van De Poppe stated.

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