Bitcoin, XRP, and Ethereum retreat as investors brace for a hawkish Federal Reserve decision, with the market focused on the upcoming dot plot and press conference tone to dictate future price action.
XRP drops 8% to $1.29 with heavy short positioning, making it the most sensitive to the Fed decision and a potential short squeeze on a surprise hold.
Bitcoin trades near $75,900, down 1.4% ahead of a widely expected Fed rate hike, with key support at $74,000 and resistance at $78,189.
Ethereum falls 3% to $2,404 ahead of the Fed decision, with downside to $2,250 in a hawkish scenario and upside above $2,484 on a surprise hold.
Brent crude closed at $108.75 amid rising energy prices and the Iran conflict, contributing to inflation and hawkish Fed expectations.
The 10-year Treasury yield hit 4.97% on September 14, reflecting inflation concerns and supporting a hawkish Fed stance.
Cryptocurrencies face downward pressure as markets price in a 92% probability of a 25 basis point Fed rate hike. Bitcoin trades at $75,900, while XRP and Ethereum decline ahead of the central bank's policy announcement and updated dot plot projections.
A standard rate hike with neutral guidance may lead to a 2-3% dip, while hawkish projections could trigger a 5% or greater decline. Conversely, a surprise hold would likely spark a significant rally.