XRP Down on Elevated U.S. Treasury Yields, Fed Rate Hike Bet
Ripple (XRP) price declined 1.36% to $1.38, closely tracking a broader market sell-off driven by heightened regulatory uncertainty ahead of a critical U.S. Senate vote on the Digital Asset Market Clarity Act.
Elevated US Treasury yields continue to drag capital; funds are flowing from the cryptocurrency market, with increase expectation that the Federal Reserve will hike rates.
The price decline coincides with rising scepticism around the U.S. Senate’s cloture vote on the Digital Asset Market Clarity Act, scheduled for September 15 at 2:15 PM ET.
Prediction market odds for the bill’s passage dropped to as low as 14-18%, down from 30% a day earlier, after Democrats rejected the latest version over unresolved ethics provisions. This regulatory limbo triggered profit-taking and cautious institutional positioning.
XRP’s price remains highly sensitive to U.S. regulatory developments. The failed cloture vote would shelve comprehensive crypto legislation, prolonging uncertainty. XRP’s drop occurred alongside a broader crypto market decline, with the total market cap down 2.39%.
Bitcoin fell 2.73%, pressured by macro headwinds: a 94% market-implied chance of a Fed rate hike on September 16 and 10-year U.S. Treasury yields nearing 5.03%—a 19-year high. This environment increases the opportunity cost of holding non-yielding assets like altcoins.
The move was partly a beta-driven reaction, with XRP underperforming Bitcoin’s drop but moving in the same direction amid a risk-off shift.
Immediate direction hinges on two events within 24 hours: the CLARITY Act cloture vote and the Fed meeting. Technically, XRP is testing the 50% Fibonacci retracement level at $1.34.
A failure to hold this support could see a drop toward the 61.8% level at $1.25. Conversely, a positive regulatory surprise could fuel a rebound toward the pivot and resistance at $1.42.
The market is in a holding pattern, with high volatility likely around the news events. The combination of regulatory uncertainty and a hawkish macro backdrop is driving selling pressure. A failed cloture vote could extend the decline. Bitcoin Price Slips as U.S. Treasury Yields, Oil Prices Rise
