XRP Plunges Amid Fed Rate Hike Fears and Macro Sentiment Shift

The price of Ripple (XRP) has dropped by 1.55% to $1.40, underperforming the broader market's slight decline. The total cryptocurrency market capitalization contracted by 2.86% to $2.69 trillion.

Broadly speaking, the market is being driven by macro-induced risk-off sentiment, with renewed fears of a US Federal Reserve rate hike following a strong US jobs report on September 4. This has triggered increased bets on a Fed rate hike, pushing its probability up to around 58%.

XRP's drop is largely due to its sensitivity to traditional market fears about interest rates. Its performance is currently tied to these macroeconomic concerns rather than any internal issues.