Crypto Prices Plummet Amid Rate Hike Fears and Stalled US Legislation

The crypto market is under pressure as investors focus on the Federal Reserve's upcoming decision in September. According to the CME's FedWatch tool, there is a 67% chance that interest rates will be raised by a quarter point, which is causing investors to price this in.

This potential rate hike is putting downward pressure on major cryptocurrencies, with Bitcoin falling 3.4%, Ethereum dropping 3.4%, XRP down 2.3%, and Solana decreasing 2.1%.

Julian Pineda of StoneX attributes the decline in demand to the stalled Clarity Act in the Senate and the possibility of additional rate hikes over the coming months.