XRP Slumps on Fed Rate Fears as Market Capitalization Drops to $2.69 Trillion

The price of Ripple (XRP) declined by 1.55% to $1.40 on Monday, underperforming the broader market due to macro-induced risk-off sentiment.

The total cryptocurrency market capitalization contracted by 2.86% to $2.69 trillion, while Bitcoin and Ethereum remained relatively stable at $79,480 and $2,494, respectively.

The drop in XRP's price is largely driven by renewed fears of a US Federal Reserve rate hike, triggered by a strong US jobs report on September 4, which showed payrolls rising by 162,000 versus a forecast of about 53,000.

This has caused traders to raise bets on a Federal Reserve rate hike, increasing the probability to about 58%, and XRP is a high-beta asset that saw amplified selling pressure in this risk-off move.