XRP traders are bracing for increased volatility this week as the entire crypto market reels ahead of Jerome Powell’s upcoming speech at the Jackson Hole symposium. Markets are also closely watching the release of the Federal Open Market Committee (FOMC) minutes, scheduled for Wednesday, which could provide crucial clues about the Federal Reserve’s policy moves in the coming months.

Crypto Markets Take a Hit as Uncertainty Mounts

Digital assets are experiencing a broad sell-off, with XRP tumbling 6.2% in the last 24 hours. Bitcoin fell 3.2% to under $114,000, while Ethereum dropped over 5% to dip below $4,200. Other coins like Cardano’s ADA suffered sharper declines, losing 8% in the same timeframe. On average, the overall crypto market recorded a 3.2% fall.

Meanwhile, crypto-related stocks felt even greater pressure as sentiment weakened across the board. Some major losses include MARA (-5.72%), COIN (-5.82%), and MSTR (-7.43%). These losses highlight how crypto-sector equities remain extraordinarily sensitive to changes in macroeconomic outlooks.

Traditional Markets Show Relative Stability

In contrast, U.S. equity benchmarks performed with more stability. The Dow Jones Industrial Average closed nearly flat, while the S&P 500 dropped 0.59% and the Nasdaq lost 1.46%. This disparity illustrates how cryptocurrencies, which typically rely on accommodative monetary policy and ample liquidity, are more exposed to interest rate shifts than traditional investment assets.

Key Events on the Fed’s Calendar

The anxiety gripping crypto and equity markets alike centers around two significant events this week. On Wednesday, the Fed will publish minutes from its July 29–30 FOMC meeting at 2 p.m. Eastern Time. Those minutes could reveal internal debates about tariffs and inflation. Attention then shifts to Aug. 22, when Jerome Powell is set to deliver his keynote at the Jackson Hole economic policy symposium at 10 a.m. ET. Together, these developments are expected to influence expectations for the September meeting’s rate decision.

Eight Issues Fueling Market Worry

Several factors are contributing to the bearish sentiment surrounding XRP and other digital assets:

• Delayed Effects of Tariffs: Many firms initially absorbed tariff costs to maintain competitiveness, but there’s growing concern that these expenses will soon get passed onto consumers.
• Stubborn Inflation Figures: Despite slight easing, inflation metrics remain high, particularly the hotter-than-expected producer price index, making rate cuts unlikely in the near term.
• Corporate Pressure: Company executives are signaling limited flexibility moving forward, indicating rising consumer inflation risk.
• Conflicting Economic Data: Sluggish job numbers alongside resilient consumer spending provide a murky picture, encouraging a wait-and-see approach from the Fed.
• Policy Complexities: The intersection of tariffs with fiscal and trade policy increases the chance of error, potentially prompting a conservative stance from Powell.
• Historical Parallels: Powell may cite inflation caused by 2018–2019 tariff shocks as precedent to justify caution now.
• Upcoming Economic Indicators: Preliminary data on manufacturing and services for August—set for release Thursday—may indicate increasing tariff-driven cost pressures.
• Fed’s Internal Disagreements: The FOMC minutes are expected to reveal divergent views, adding weight to Powell’s likely call for policy consensus and patience.

Impact on the XRP Ecosystem

For XRP and the broader digital asset landscape, persistent high-interest rates directly threaten the liquidity flows necessary for robust trading volumes and speculative rallies. Additionally, crypto miners could struggle with elevated financing costs, and exchanges may face lower transaction activity due to cautious retail investors.

If Powell’s speech signals continued hawkishness, the XRP downturn may deepen. However, any dovish surprise—no matter how subtle—could provide the spark that triggers a recovery across crypto markets.

A chart displaying the recent downturn in crypto assets, including XRP, before the Fed’s critical announcements.

Related: XRP Price: $12M Max Pain for Bears

With uncertainty still looming, XRP remains highly responsive to macroeconomic signals. Traders should stay alert as Fed guidance later this week could determine the market’s short-term trajectory.