Bitcoin, Ethereum, and XRP face downward pressure from shifting Fed rate expectations and geopolitical tensions, while the upcoming CLARITY Act vote remains a key catalyst for potential upside.
Bitcoin faces selling pressure from expected Fed rate hike but could rebound on positive CLARITY Act news.
Ethereum is subject to the same macro headwinds from rate hikes and potential upside from regulatory clarity.
XRP may see volatility from the Fed decision and CLARITY Act vote, with mixed signals from analysts.
Crypto markets face significant volatility as JPMorgan and Goldman Sachs pivot to forecast a 25 bps Fed rate hike this week. Heightened inflation data and rising oil prices have fueled market uncertainty, though potential progress on the CLARITY Act offers a glimmer of hope for a rebound. Traders are closely monitoring the FOMC meeting alongside upcoming central bank decisions from the UK and Japan.
The shift follows hotter-than-expected August CPI and PPI inflation data, prompting major firms like Goldman Sachs and JPMorgan to adjust their forecasts.
Bernstein analysts suggest that positive news or bipartisan support for the CLARITY Act could provide the necessary momentum to offset bearish macro sentiment.