XRP Plunges 10% Before FOMC Decision—Here’s the Crypto Market’s Next Move
XRP just got rocked—dropping double digits as traders brace for Fed fireworks. The FOMC meeting looms, and crypto’s playing defense. Here’s the breakdown.
Why the sell-off? Markets hate uncertainty. With Powell & Co. set to dictate rate policy, XRP holders are cashing chips early. Classic 'buy the rumor, sell the news'—except this time, the rumor’s a 10% haircut.
What’s next for XRP? If history’s any guide, volatility’s the only guarantee. Bulls hope this is a kneejerk overreaction; bears smell blood. Either way, the Fed’s about to remind crypto who’s really in charge of liquidity. (Spoiler: it’s not the decentralized protocols.)
Pro tip: Watch BTC’s reaction—when the OG crypto flinches, alts like XRP get thrown out the window. And if the Fed hints at more hikes? Buckle up. Nothing makes traders panic like the sound of free money drying up.
Source: CoinGecko
Will XRP Recover From The Dip After The FOMC Meeting?
The market may face some volatility leading up to the FOMC meeting later today. Investors will likely look for clues about the Federal Reserve’s next monetary policy before taking risky positions. The CME FedWatch tool indicates a 96.9% chance that the Federal Reserve will keep interest rates unchanged. The absence of a rate cut could negatively impact retail investors. The MOVE could lead to further outflows for XRP. Such a scenario could spell unfavorable news for the asset.
However, there is still a possibility that the Federal Reserve will announce an interest rate cut soon. President TRUMP has been putting a lot of pressure on Fed Chair Jerome Powell for a rate cut for quite some time. If Powell gives in to Trump’s demands, we could see a market-wide resurgence as borrowing becomes easier. XRP could rebound under such conditions.
There is also a high probability that we will get a spot XRP ETF sometime this year. An ETF approval from the SEC could lead to a substantial rise in institutional inflows for XRP. Institutional money has played a central role in Bitcoin’s (BTC) rise to above $120,000 earlier this month. We could see a similar pattern emerge for XRP as well.
