XRP dropped 5% over the weekend as broader crypto markets moved sideways and investors locked in gains across major tokens. The pullback came as traders look ahead to a possible interest rate cut by the Federal Reserve in September, raising questions about how digital assets might respond in a changing macroeconomic environment.

Major Cryptos Face Selling Pressure

Throughout the weekend, cryptocurrencies faced a wave of selling, with XRP and Solana’s SOL leading losses among top assets. XRP slipped nearly 5%, matching a similar decline in SOL. Meanwhile, Bitcoin (BTC) dipped 2.4%, settling just under $115,000, and Ether (ETH) fell 4.4%, hovering above $4,200.

Other altcoins followed suit with modest declines. BNB maintained stability close to $833, while Dogecoin (DOGE) softened to 22 cents. Cardano’s ADA stayed around 91 cents as intraday traders applied pressure to liquid markets without dramatic changes in price.

Rate Cut Expectations Impact Trader Sentiment

Investor positioning ahead of the Federal Reserve’s September policy meeting continues to shape the financial landscape. Many traders priced in expectations of a rate cut, a shift that’s already being reflected in bond and futures markets. Despite the flat trading over the weekend, the anticipation of future policy moves is steering sentiment.

“The potential for the Fed to reduce rates next month could rekindle Bitcoin’s traditional relationship with gold,” said Nick Ruck, director at LVRG Research. “Gold is currently benefitting from strong central bank demand, while Bitcoin’s dependence on investor risk appetite makes its path more volatile.”

Ruck pointed out that during previous periods of monetary easing, Bitcoin and gold prices have often moved in tandem. However, the recent divergence—with gold surging to record highs and Bitcoin stagnating—highlights key differences in investor perception. Gold continues to serve as a tried-and-true hedge in times of geopolitical stress, while Bitcoin remains more speculative and responsive to institutional interest and broader risk trends.

Equity Markets Remain Key Indicator

With a quiet week for economic indicators, many market watchers believe equities could set the tone for crypto. “Crypto didn’t move much over the weekend,” said Jeff Mei, Chief Operating Officer at BTSE. “Once U.S. stocks open on Monday, we expect digital assets to track equity performance closely.”

Several major retailers, including Walmart, Lowe’s, and Target, are scheduled to release financial results. These updates could offer insight into how ongoing inflation and tariffs are impacting U.S. consumer behavior—potentially influencing broader market sentiment.

“Investor reactions will likely hinge on how retail earnings point toward economic stability or stress,” Mei added. “These developments could give traders a clearer view of where crypto might head next.”

Short-Term Uncertainty, Long-Term Themes

For now, crypto prices—including XRP’s recent drop—seem tethered to the movements of traditional equities. But as central banks around the world make pivotal decisions in the coming months, the role of Bitcoin and major altcoins could shift once again. If rate cuts materialize in September, market dynamics could angle crypto back into its ‘digital gold’ narrative—or it could continue tracking with growth stocks and other risk-sensitive assets.

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

Crypto markets faced weekend pressure with XRP and Solana leading losses in a cautious environment ahead of possible Fed easing.