XRP Price Tests Stability Amid Rising Yields and Hawkish Fed Outlook

XRP's price stability is being tested as macroeconomic pressures mount, driven by rising Treasury yields and expectations of a potential Federal Reserve interest rate hike.

The 10-year Treasury yield has surged to its highest level since January 2025, reaching around 4.8%, while the dollar strengthened due to inflation concerns revived by escalating U.S.-Iran tensions.

These developments have increased the probability of a September rate increase, with Fed funds futures now indicating a 68% chance, up from 35% before Chairman Kevin Warsh's Jackson Hole remarks.

Despite strong institutional demand for XRP, with U.S. spot ETFs attracting $110.49 million in the week ending August 28, the token has lost almost 7% over the past week, creating a divergence between regulated investment flows and spot-market performance.