Goldman Sachs now expects an October rate hike after the Fed's hawkish dot plot, pressuring equities and threatening to push Bitcoin and XRP toward lower support levels as Treasury yields climb.
An additional Fed rate hike in October with less market pricing cushion could push Bitcoin toward lower support levels as higher Treasury yields reduce demand for crypto.
XRP remains below its 200-day moving average and could face additional selling pressure if the Fed's October hike raises yields further.
The S&P 500 fell about 1% following the Fed's hawkish rate projections and another expected hike.
The Dow dropped roughly 1.7% or more than 700 points after the Fed signaled another hike in October.
VIX has moved higher over the past month, reflecting rising market uncertainty around Fed policy and crypto risk.
Goldman Sachs has updated its outlook to include a 25-basis-point rate hike in October following the Federal Reserve's hawkish shift. The S&P 500 fell 1% and the Dow dropped over 700 points as markets reacted to higher inflation projections and Chair Kevin Warsh's commentary. Bitcoin and XRP face potential downside risks as the lack of market pricing for an October move threatens to dampen crypto demand.
The bank shifted its outlook after the Fed's updated rate projections showed 16 of 18 officials expecting at least one more hike, combined with higher inflation forecasts and Chair Kevin Warsh's hawkish commentary.
While Bitcoin and XRP gained over the past month, they face renewed pressure because the market has not fully priced in an October hike, and rising Treasury yields are reducing the relative appeal of digital assets.