XRP Trapped in $2.4B Debt Cycle: Will Fed Decision Spark Wipeout?

XRP's price has been volatile this week, trading near $1.06 as of now. Over the past day, it dropped by 2.9% and over the past week by 8.6%. According to CoinGlass, XRP open interest is at $2.43 billion, with a 24-hour futures volume of $2.47 billion and just $361 million in spot volume.

The futures turnover is roughly 6.85 times the spot turnover, and forced liquidations have already erased $9.51 million in XRP positions over the past day. This has led to concerns that a derivatives-heavy market can move fast when forced position-cutting outruns what a thin spot market can absorb.

The Federal Reserve's July meeting is scheduled from July 28 to 29, with the policy statement landing at 2 p.m. Eastern on July 29 and a press conference at 2:30 p.m.