XRP faces sharp volatility as macro headwinds and rising Fed rate hike expectations sideline institutional investors and drive negative funding rates.
XRP is dropping sharply as a high-beta crypto absorbing macro selloffs driven by hotter CPI and rising Fed rate hike odds.
Bitcoin is also declining amid macro pressure but less severely than XRP, reflecting its lower beta.
Ethereum is down modestly, outperforming XRP but still affected by the risk-off macro environment.
BNB shows relative strength with minimal losses, as it is less correlated to the macro-driven selloff.
XRP is leading a broader crypto market decline, falling 7.1% over the past week as investors react to hotter-than-expected CPI data. With oil prices at $107 per barrel fueling inflation concerns, market participants have priced in an 83% probability of a Federal Reserve rate hike on September 16, causing high-beta assets like XRP to face intensified selling pressure.
XRP acts as a high-beta asset, meaning it exhibits higher volatility than the broader market. When macro conditions deteriorate due to inflation or interest rate fears, XRP tends to swing more sharply than lower-beta assets like Bitcoin or Ethereum.
The selloff is primarily driven by macroeconomic factors, specifically hotter-than-expected CPI and PPI data, which have pushed Fed rate hike expectations to 83% and increased Treasury yields, making non-yielding assets like crypto less attractive.