The XRP market is feeling the pressure as major cryptocurrencies, including bitcoin and ether, stumble on renewed concerns of a more aggressive stance from the U.S. Federal Reserve ahead of the Jackson Hole Economic Symposium. Market jitters have intensified, leading to a wave of sell-offs across digital assets and crypto-related stocks.

Bitcoin and Ether Take a Hit as Risk Appetite Dwindles

Bitcoin (BTC) fell beneath the $114,000 mark in Tuesday’s early U.S. trading session, touching $113,700 — its weakest point in nearly two weeks and down 9% from its record close above $124,000 last Thursday. Ether (ETH) wasn’t immune either, dropping 3.5% over the past day to just under $4,200.

Other altcoins also experienced sharp declines. Chainlink (LINK), Avalanche (AVAX), Toncoin (TON), Ethena (ENA), and Aptos (APT) all fell between 4% and 6% in the same time frame. These losses reflect broader investor concerns regarding increased regulation and tightening monetary policies.

Crypto Treasury Stocks Slump Further

The downturn extended to crypto-treasury-focused stocks. Firms like KindlyMD (NAKA), known for aggressively accumulating bitcoin, posted a 14% drop. Ethereum-focused players, including Bitmine Immersion (BNMR) and Sharplink Gaming (SBET), were also hit hard, declining 10% and 8% respectively.

Sharplink Gaming’s trajectory exemplifies the wider correction happening in the crypto investment landscape. After pivoting to become an ether-focused institution in May and briefly touching $124 per share, its valuation has nosedived by roughly 85% to $18.60.

Michael Saylor’s flagship company, Strategy (MSTR), also reported a 5.7% decline on Tuesday. Over the past 30 days, it’s down a significant 20%, marking a 37% fall since its all-time high late last year. Nonetheless, the firm remains one of the most successful early movers in crypto investment strategy, with shares up more than 20 times since Saylor initiated their BTC accumulation campaign five years ago.

A price chart showing Bitcoin’s dip below $114K amid market caution before Powell’s speech.

Markets Await Powell’s Jackson Hole Speech

Anticipation is building around Fed Chair Jerome Powell’s upcoming remarks at the Federal Reserve’s Jackson Hole Symposium. Investors who once counted on a rate cut in September are now bracing for a potentially hawkish tone in Friday’s speech.

Although recent data points to a softening labor market and cooling economic activity, last week’s hotter-than-expected Producer Price Index (PPI) has rekindled fears of inflation making a comeback.

According to analysts at Bank of America, the Federal Reserve is now likely to maintain its current interest rate level in September. “With inflation stuck over the past year, expected tariff passthroughs, and strong labor market fundamentals, we think the Fed has reason to stand pat,” the report noted.

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Investor sentiment has shifted accordingly. The probability of a 25 basis point rate cut next month, once as high as 98%, has slipped to 85%, according to the CME FedWatch Tool.