Hawkish Fed Comments Already Hit XRP Hard, but an Actual Rate Hike Could Be Catastrophic
A rate hike in September could put significant pressure on XRP, according to AI analysis. The token has already shown its sensitivity to hawkish Fed comments, plummeting from above $1.40 to $1.36 after a recent speech by Fed Chair Kevin Warsh.
The August 28 comments led to the liquidation of over $360 million in leveraged XRP positions within 24 hours, with the token trading between $1.37 and $1.40 since then.
An actual rate hike on September 16 could exacerbate this situation, as traders would no longer be responding to speculation about Fed actions but to a confirmed policy change.
Two major events are converging in early September: the Fed's rate decision and a cloture vote on the CLARITY Act, which aims to establish clearer rules for digital assets.