XRP price fell nearly 5% over the weekend as broader cryptocurrency markets experienced mild profit-taking, with investors closely watching the Federal Reserve’s next move in September. Traders are assessing whether a possible interest rate cut will lift risk assets like XRP or revive its historic link to gold.

Market Movement Driven by Investor Uncertainty

Over the weekend, the crypto market traded sideways, with Bitcoin hovering near $115,000 and Ethereum holding strong above $4,200. XRP and Solana’s SOL led the downturn among major cryptocurrencies, each dropping close to 5%. Meanwhile, Bitcoin slipped around 2.4%, and Ether dropped by 4.4%.

Other notable moves included BNB dipping slightly to approximately $833, Dogecoin trending lower to around 22 cents, and Cardano’s ADA steadying near 91 cents despite heightened trading activity. Across the board, the weekend suggested cautious profit-taking and market consolidation in the absence of strong macroeconomic signals.

Fed Meeting Looms Large in Crypto Strategy

A potential Federal Reserve rate cut in September is becoming the key driver of market positioning. Bond and futures markets are heavily pricing in monetary easing, which could either push cryptocurrencies further into “risk-on” territory or rekindle their historical correlation with non-risk assets like gold.

Nick Ruck, director at LVRG Research, noted that Bitcoin might resume acting like “digital gold” if the Fed follows through on reducing interest rates. “The Fed’s potential rate cuts in September could reignite Bitcoin’s correlation with gold as a liquidity-driven hedge, but recent decoupling shows gold thriving on central bank demand while BTC remains tethered to risk-on sentiment,” he said.

Historically, monetary easing drives both gold and Bitcoin upward, but investors have recently favored gold due to ongoing geopolitical threats and aggressive central bank buying. Bitcoin, on the other hand, has been more responsive to investor sentiment and the state of institutional involvement.

XRP and SOL Among Weekend’s Weakest Performers

Though many cryptocurrencies experienced slight dips, XRP and Solana’s SOL saw the steepest declines among the majors. Analysts attribute this to profit-taking following recent rallies and a wait-and-see approach heading into a critical macro period.

Jeff Mei, Chief Operating Officer at BTSE, pointed out that the crypto market could mirror equity trends at the start of the U.S. trading week. “Markets didn’t see much movement over the weekend, so we’d expect cryptocurrencies to trade in line with stocks when the US market opens later today,” he remarked in a note to CoinDesk.

He added that the short-term direction of the market may be influenced by retail earnings from companies like Wal-Mart, Lowe’s, and Target. “Their data and outlook could give an indication as to how tariffs and inflation are affecting the business environment,” Mei explained. “It’d be interesting to see how markets react.”

Looking Ahead: XRP’s Role in Risk or Safe-Haven Trade

The next few weeks are likely to determine whether XRP, along with Bitcoin and other digital assets, continues to behave like a risk asset or reverts to its projected role as a hedge in times of economic uncertainty. September’s Fed decision could provide the long-awaited clarity on the trajectory.

In the meantime, XRP remains at the mercy of broader economic cues and investor reactions to corporate earnings and inflation data. With gold gaining traction on safe-haven narratives, digital assets like XRP may soon either follow or diverge noticeably.

Crypto traders monitor weekend market pullbacks, with XRP among the hardest hit.

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