Ripple Slumps as Rate Hike Expectations Fuel Macro Risk-Off Sentiment

The crypto market is experiencing a downturn due to rising expectations of a Federal Reserve rate hike. This has led to a broad decline in asset values, including Ripple (XRP), which dropped around 3% today and is approaching the key $1.3 level.

The data release from the US Producer Price Index (PPI) for August exceeded market expectations, rising to 5.4% year-over-year. This has increased the probability of a Fed rate hike in September, as indicated by CME FedWatch, which jumped above 70%

If the Fed decides to hike interest rates at its policy meeting next week (September 15-16), it will drive up US Treasury yields and the US Dollar Index, triggering outflows from high-risk assets. XRP has declined under the weight of this macro risk-off sentiment.