Bitcoin and XRP: Where Will They End the Year?

Bitcoin and XRP have had a rough year so far, with Bitcoin down 28% and XRP down 46%. The price of Bitcoin has fallen every month since its January high of $97,860, while XRP has lost ground after a brief rally in the first week of January. To predict where these cryptocurrencies will end the year, analysts look at two key factors: Federal Reserve policy and ETF flows.

The outlook for Bitcoin rests on whether the Fed will cut interest rates or hold them steady. If the Fed signals a rate cut, institutional money is likely to flow back into Bitcoin, pushing its price up towards $95,000-$100,000 by December. However, if the Fed hikes rates again, Bitcoin's price could fall to $52,000.

XRP's outlook, on the other hand, depends almost entirely on the passage of the CLARITY Act, which would classify XRP as a commodity under US law and hand oversight to the CFTC. If the bill passes its cloture vote in September, XRP could rally to $2.00. However, if it misses the vote and ETF outflows continue, XRP's price could drop to $0.75.