XRP slumped alongside other top cryptocurrencies as investors braced for potentially hawkish messaging from the upcoming Jackson Hole summit. The broader crypto market retraced sharply over the last 24 hours, leading to $270 million in liquidations, with Ether (ETH) and Bitcoin (BTC) seeing the bulk of the impact.

Market Pullback Driven by Fed Rate Cut Doubt

The downturn in digital assets coincided with a shift in interest rate expectations. Polymarket data showed a significant rise in the odds of no Federal Reserve rate cut in September—jumping from 12% to 26%. This recalibration triggered a wave of risk-off behavior, especially with Federal Reserve Chair Jerome Powell’s highly anticipated Jackson Hole speech expected later this week.

“It’s been a turbulent 24 hours in the crypto market, with over $270 million in liquidations, led by $170 million in ETH and $104 million in BTC,” said Nick Forster, founder of Derive.xyz. “A vast majority (95%) of these were long positions, triggered by moderate pullbacks of 3% for ETH and 2% for BTC.”

XRP Holds Steadier Than Peers

Despite the widespread selloff, XRP showed relative resilience. While Ethereum and Bitcoin experienced heavier declines, XRP held firmer at $3.02, reducing weekly gains to 4% from a prior 9% high. XRP’s steadier performance indicates some investor confidence, even in volatile macro conditions.

Nonetheless, implied volatility spiked in Ethereum derivatives. According to data from Derive, the token’s seven-day implied volatility climbed to 73% from 68%. Interestingly, the 30-day implied volatility remained stable, implying traders foresee near-term price swings without committing to a long-term bearish stance.

Crypto markets suffer steep pullback ahead of Jackson Hole policy talks.

Derivatives Signal Mixed Market Sentiments

Beyond the spot market, analysts are watching derivatives for clearer signals. Forster noted a modest increase in speculative bets on Bitcoin reaching $100,000 by the end of September, rising from 15% to 21%. Similarly, the probability for Ethereum retreating to $4,000 climbed to 60%.

Still, few traders expect radical policy changes. Augustine Fan, Head of Insights at SignalPlus, explained that hopes of a hefty 50-basis-point interest rate cut were already dismissed. “Any hopes of a 50bp cut at the September meeting were quickly dashed, with ~90% of a single cut being priced as of Friday’s close,” Fan said.

Markets are now waiting for further macroeconomic clues from Powell’s speech. With inflation concerns lingering, most analysts expect a cautiously neutral tone rather than dovish surprises.

Crypto Prices and Weekly Performance Summary

Alongside the evolving macro narrative, major cryptos posted noticeable drops. Bitcoin fell to $115,036, marking its lowest level in nearly two weeks. Ethereum followed, trading at $4,235. XRP, although affected, managed a more modest retreat, reflecting maintained support among investors.

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

While the Jackson Hole Economic Symposium will likely dominate market focus over the next few days, traders are approaching positions with tighter risk management, mindful of both volatility and sentiment shifts.