XRP Resilience Tested as Fed Rate Hike Odds Surge and Treasury Yields Soar
XRP held steady at around $1.38 on Tuesday despite rising Treasury yields and growing expectations of a Federal Reserve interest rate hike in September.
The token's price remained almost unchanged over the past 24 hours but decreased by approximately 6.8% over seven days, with its market capitalization hovering near $86.4 billion and 24-hour trading volume dropping roughly 26% to $1.78 billion.
However, a rapidly deteriorating macro environment is putting pressure on XRP's stability, with the benchmark 10-year Treasury yield climbing towards 4.8%, its highest level since January 2025, and the dollar strengthening due to rising oil prices and inflation concerns.
The odds of a September rate increase have jumped to 68% from 35% before Chairman Kevin Warsh's Jackson Hole remarks, according to Reuters, with Fed funds futures now indicating that rates may need to rise if price pressures do not decline quickly, as stated by Governor Michael Barr.