XRP news today: Crypto Market Drops 1.8% as ADA, XRP Fall 4% Awaiting FOMC Decision
1min read Cardano’s ADA and XRP experienced significant declines on Tuesday, leading losses among major cryptocurrencies. This downturn occurred as traders eagerly awaited the outcome of the upcoming Federal Reserve (FOMC) meeting. The meeting is anticipated to keep interest rates unchanged, but the comments from Fed Chair Jerome Powell could provide crucial insights for further market positioning.
Bitcoin (BTC) prices managed to stay above $94,000 after briefly falling below this level on Sunday, maintaining its recent range-bound behavior. Meanwhile, ADA price dropped nearly 4%, and XRP slid by a similar margin. Ether (ETH) fell nearly 1%, while BNB Chain’s BNB rose 1.3%. Memecoin Dogecoin (DOGE) was down 2% in the past 24 hours.
The broad-based CoinDesk 20 (CD20), an index that tracks the largest tokens by market capitalization, dropped a little over 1.8%. Some DeFi tokens, such as aave, Curve’s CRV, and Hyperliquid’s HYPE, have seen increased demand over the past week. This trend indicates growing trader interest in projects with utility and yield mechanisms.
“As memecoins fall out of favor, traders are turning to projects with stronger fundamentals and token economics,” said Kay Lu, CEO of HashKey Eco Labs. “DeFi ecosystems are benefiting from this pivot, especially as Bitcoin shows decreased volatility and macro uncertainty lingers. We're hopeful to see the DeFi trend continue as Bitcoin maintains decreased volatility and crypto acts as a hedge for economic uncertainty,” Lu added.
HYPE led gains among the top 100 tokens with a 72% surge in the past week, with AAVE and CRV up as much as 40%. Traders across both crypto and traditional finance markets are closely watching this week’s FOMC interest rate decision, with consensus expectations pointing to a pause in rate hikes. However, uncertainty around inflation, tariffs, and broader U.S. trade tensions has left many participants cautious.
“We don’t expect the FOMC to trigger a major move in markets,” said Augustine Fan, Head of Insights at SignalPlus. “It’s a coin flip on direction. Crypto will likely take cues from broader earnings growth and how the economy digests the impact of recent trade policies.”
Ask Aime: How will the Federal Reserve meeting affect the cryptocurrency market?
Recent stock market strength suggests that investors are pricing in only a mild recession risk, around 8%, according to historical drawdown models. This contrasts with more bearish signals from bond markets and macroeconomic forecasts. Last week, the President confirmed no immediate plans for talks with China, dampening hopes for a breakthrough in U.S. trade negotiations. However, the possibility of separate trade agreements has helped keep risk sentiment intact.
