Fed Dissent Sparks Rate Hike Concerns Amid Oil Price Plunge

Bitcoin and XRP are struggling to break free from selling pressure despite oil prices plummeting. The US-Iran war tensions have eased, with President Donald Trump saying the US is having 'good talks' with Iran aimed at ending the conflict. However, this relief has not translated into gains for Bitcoin or XRP.

Instead, investors are fixated on the upcoming Federal Reserve meeting, where officials will vote on interest rates. Markets expect a 10-2 split vote, with two Fed members in favor of a 25 basis point rate hike. However, growing concerns over Fed dissents could signal a rate hike in September.

A rate hike would have significant implications for the markets, and investors are closely watching the FOMC meeting for clues on interest rates. The CME FedWatch Tool shows a 56% probability of a rate hike by 25 basis points in September. This has caused concern among investors, with T. Rowe Price predicting that the Fed will keep rates unchanged over the next 12 months.

Meanwhile, oil prices have fallen below $80 per barrel, while the US dollar index (DXY) holds near 101.6. However, Bitcoin and XRP are taking a hit, with Bitcoin trading at around $63,320 and XRP at $1.05. The derivatives market is also showing selling pressure, with total Bitcoin futures open interest dropping more than 2% in the past 24 hours.