The US Fed meeting will play a vital role for the entire US stock and the crypto market. The Federal Open Market Committee (FOMC) meeting on the rate hike will decide the future price actions of leading crypto coins. The upcoming rate hike puts Ethereum, Bitcoin and XRP under pressure, which could change if the much-awaited 0.75% bps rate is approved.
XRP Price
XRP price has seen a rise of over 8% in the last 24 hours, and it is leading the recovery phase among the top projects in the crypto market despite the decline of US stocks ahead of the FOMC meeting, which is scheduled for tomorrow.
According to CoinMarketCap, XRP has made a considerable spike of over 10% from yesterday and is currently trading at $0.4. It seems that the huge spike came after Ripple submitted a filing to the SEC, mentioning that XRP was not a security to the regulators.
Ripple clarified that their native token XRP could not be concluded as a security as Ripple did not provide investors with the rights to act in interest, which is the main requirement to become an ‘Investment Contract.’
Ethereum, Bitcoin, and ADA also increased by 4%, while popular meme coins like Doge and SHIB saw a minimum increase of 2%. According to CoinMarketCap, Ethereum is currently trading near $1,338. However, Ethereum Classic (ETC) slipped downward by 15% as the hype of ETC faded away.
Will The Recover Rally Continue?
The crypto market has just got out of the winter and kicked off its recovery phase. However, no one knows how long the recovery session will continue as the decisions that will be made in the FOMC meeting tomorrow will have a significant impact on the crypto market. The crypto market will remain positive if the rate hike is 75 basis points, which is favored by the industry.
However, some analysts think that the Fed will increase the interest rate to 100 basis point, creating a bearish momentum for the whole industry and the crypto market.
Chris Esparza, CEO and founder of Vault Finance, said, “With August inflation figures of 8.3%, the Fed will be even more determined to raise interest rates by up to 100 basis points. Bitcoin has the highest correlation with the broader stock market, which has been under seller pressure since the inflation data was released.”
Suppose the FOMC meeting does not bring any unexpected moment in the market or investors. In that case, it is expected that the recovery rally will continue further and have a positive impact on the market.