The crypto market entered the weekend under pressure as major tokens slipped, reflecting growing investor skepticism around the Federal Reserve’s next policy steps.

Bitcoin (BTC), Ethereum (ETH), and XRP all posted losses of 2–5% in the last 24 hours. The downturn comes amid renewed doubts over whether the Fed will deliver aggressive interest rate cuts this year.

For years, cryptocurrencies have been viewed as a hedge against inflation and traditional finance. But in reality, Bitcoin and other digital assets often trade like risk-on assets, closely tied to macroeconomic policy.

When interest rates are high, investors tend to favor safer, yield-bearing assets like bonds. Conversely, lower rates often drive capital into higher-risk assets—including crypto. That’s why every word from Fed Chair Jerome Powell has the power to move markets.

In his most recent remarks, Powell suggested the Fed may only cut rates by a modest 25 basis points in the near term, rather than pursuing the deeper easing some investors had hoped for.

That single hint was enough to dampen market optimism. Traders who were betting on aggressive cuts have started to reprice risk, and crypto markets are feeling the heat.

The expiration of billions in Bitcoin and Ethereum options this week only adds to the volatility. Many analysts expect choppy price action until clearer signals emerge from the Fed’s upcoming meetings.

• BTC: Currently hovering just below a key resistance zone, with $108K as a major psychological level.

• ETH: Struggling to hold above $4,300 support.

• XRP: Down more than 4%, facing renewed selling pressure.

While short-term moves are dictated by macro uncertainty, the long-term thesis for crypto remains intact. Institutional adoption continues, and political momentum—highlighted by figures like Trump openly endorsing Bitcoin—adds another dimension to the narrative.

Still, until the Fed shows its hand, expect crypto markets to remain highly sensitive to economic data, particularly inflation numbers and rate announcements.

The crypto market entered the weekend under pressure as major tokens slipped, reflecting growing investor skepticism around the Federal Reserve’s next policy steps.

Bitcoin (BTC), Ethereum (ETH), and XRP all posted losses of 2–5% in the last 24 hours. The downturn comes amid renewed doubts over whether the Fed will deliver aggressive interest rate cuts this year.

For years, cryptocurrencies have been viewed as a hedge against inflation and traditional finance. But in reality, Bitcoin and other digital assets often trade like risk-on assets, closely tied to macroeconomic policy.

When interest rates are high, investors tend to favor safer, yield-bearing assets like bonds. Conversely, lower rates often drive capital into higher-risk assets—including crypto. That’s why every word from Fed Chair Jerome Powell has the power to move markets.

In his most recent remarks, Powell suggested the Fed may only cut rates by a modest 25 basis points in the near term, rather than pursuing the deeper easing some investors had hoped for.

That single hint was enough to dampen market optimism. Traders who were betting on aggressive cuts have started to reprice risk, and crypto markets are feeling the heat.

The expiration of billions in Bitcoin and Ethereum options this week only adds to the volatility. Many analysts expect choppy price action until clearer signals emerge from the Fed’s upcoming meetings.

• BTC: Currently hovering just below a key resistance zone, with $108K as a major psychological level.

• ETH: Struggling to hold above $4,300 support.

• XRP: Down more than 4%, facing renewed selling pressure.

While short-term moves are dictated by macro uncertainty, the long-term thesis for crypto remains intact. Institutional adoption continues, and political momentum—highlighted by figures like Trump openly endorsing Bitcoin—adds another dimension to the narrative.

Still, until the Fed shows its hand, expect crypto markets to remain highly sensitive to economic data, particularly inflation numbers and rate announcements.