Why are BTC, ETH and XRP prices down today and will Bitcoin, Ethereum and Ripple finally rise or continue to fall? The crypto market declined after the Federal Reserve released FOMC minutes showing concern about inflation and future rate decisions. Investors reacted by reducing exposure to risk assets like Bitcoin, Ethereum and XRP. The crypto market fell to about $2.31 trillion, reflecting weaker investor confidence. Liquidations, stronger dollar, geopolitical tensions and macroeconomic uncertainty also affected crypto prices. Bitcoin fell below key levels while Ethereum and XRP recorded larger losses. Investors are now watching inflation data, Federal Reserve policy decisions and liquidity conditions to understand whether the crypto market will recover or continue to decline in the coming weeks.
Why are BTC, ETH and XRP prices down today and will Bitcoin, Ethereum and Ripple finally rise or continue to fall?
The crypto market is falling because investors are reacting to Federal Reserve policy signals, macroeconomic uncertainty and weaker liquidity. The FOMC minutes confirmed that interest rate cuts are not certain and rate hikes remain possible if inflation does not decline. Higher interest rates reduce liquidity and lower demand for risk assets like Bitcoin, Ethereum and XRP. Large liquidations, profit-taking and stronger dollar conditions also increased selling pressure. These factors caused Bitcoin, Ethereum and XRP to decline and prevented sustained recovery in the crypto market.
Why are BTC, ETH and XRP prices down today?
BTC, ETH and XRP prices are down because the Federal Reserve signaled caution on rate cuts and left open the possibility of rate hikes. This strengthened the dollar and reduced liquidity. Traders also closed leveraged positions, causing more than $224 million in liquidations. Investors shifted funds into safer assets like gold and US Treasuries due to global uncertainty and geopolitical tensions. Bitcoin fell near $66,700, Ethereum declined near $1,965 and XRP dropped near $1.42. These declines reflect macroeconomic pressure and weaker investor demand in the crypto market.
Crypto market drop explained
The crypto market declined after the Federal Reserve released FOMC minutes confirming concern about inflation. Policymakers voted 10-2 to keep interest rates at 3.5%-3.75%. However, officials also signaled that rate hikes remain possible if inflation does not move toward the 2% target.
This policy outlook reduced investor confidence in risk assets. Higher interest rates strengthen the dollar and reduce liquidity in financial markets. Crypto assets like Bitcoin, Ethereum and XRP often decline when liquidity tightens. Investors now expect a 93% probability that rates will remain unchanged in the next meeting, which limits bullish momentum in the crypto market.
The crypto market decline triggered large liquidations in futures markets. Traders lost more than $224 million in leveraged positions in 24 hours. Long position traders lost about $164 million, increasing downward pressure.
Open interest declined by 0.71%, showing reduced participation. Profit-taking by traders and institutions also contributed to the crypto market decline. Lower demand and reduced leverage caused Bitcoin, Ethereum and XRP prices to fall further.
Bitcoin, Ethereum and XRP price decline
Bitcoin price fell about 1.7% to around $66,700 to $67,047. Ethereum declined between 2% and 2.3% and traded near $1,965 to $1,975. XRP recorded larger losses between 4% and 5%, falling near $1.42.
These declines reflect broad crypto market weakness. Other cryptocurrencies like Solana, BNB and Dogecoin also declined. The crypto market failed to sustain recovery attempts because of uncertainty about Federal Reserve rate cuts and macroeconomic conditions.
Global macroeconomic uncertainty continues to affect crypto prices. Rising US-Iran tensions increased investor caution. Investors moved funds into safer assets like gold and US Treasuries instead of crypto.
Trade policy discussions and tariff statements also affected investor sentiment. Stronger dollar conditions typically reduce demand for crypto assets. Bitcoin has started trading like a macroeconomic asset, reacting to interest rates, liquidity and global financial conditions rather than crypto-specific events.
Will Bitcoin, Ethereum and Ripple finally rise or continue to fall?
Bitcoin, Ethereum and Ripple may remain under pressure until there is clarity on Federal Reserve policy and inflation trends. Analysts said crypto prices depend on liquidity and interest rate expectations. If inflation declines and the Federal Reserve starts cutting rates, crypto assets may recover. Lower rates increase liquidity and support investor demand. However, if inflation remains high and rate cuts are delayed, Bitcoin may fall below $65,000 and Ethereum and XRP may continue to face selling pressure. Recovery depends on macroeconomic conditions and investor confidence.
Analysts insights and crypto market outlook
Analysts say crypto market decline is linked to macroeconomic factors rather than weak fundamentals. Market experts said uncertainty around Federal Reserve policy is limiting crypto growth.
Analysts also noted that Bitcoin may fall below $65,000 if selling continues. However, recovery remains possible if inflation declines and Federal Reserve rate cuts begin. Lower rates improve liquidity and increase demand for risk assets like Bitcoin, Ethereum and XRP.
Experts also said liquidations, profit-taking and reduced leverage caused temporary pressure. Long-term recovery depends on investor confidence, liquidity and macroeconomic stability.
Upcoming US jobs data and inflation reports will influence Federal Reserve policy decisions. If inflation declines and economic growth slows, the Federal Reserve may cut rates.
Rate cuts increase liquidity and support crypto market recovery. However, if inflation remains high, the Federal Reserve may delay rate cuts. This scenario may keep Bitcoin, Ethereum and XRP under pressure.
Crypto prices remain dependent on macroeconomic conditions, investor sentiment and liquidity. Recovery is possible, but uncertainty remains high.
Vikas Gupta, Country Manager India at Bybit, told The Economic Times, the recent crypto market decline is caused by short-term macroeconomic factors and liquidity changes, not weak crypto fundamentals. He explained that earlier expectations of faster Federal Reserve rate cuts supported crypto prices, but uncertainty about policy easing has reduced liquidity and pushed investors toward safer assets like US Treasuries and gold. He also said liquidations from leveraged positions, profit-taking by traders and weaker participation increased volatility. According to him, Bitcoin’s decline affected Ethereum and XRP, but this reflects sentiment and positioning rather than long-term structural weakness in the crypto market.
What should investors do now?
Investors should monitor Federal Reserve policy, inflation data and liquidity trends before making decisions. Crypto markets remain sensitive to macroeconomic changes. Investors may avoid high leverage because liquidations increase risk during volatility. Long-term investors may watch key support levels and wait for stable market conditions before increasing exposure. Diversification across different assets may reduce risk. Investors should also track market sentiment, dollar strength and economic reports because these factors influence Bitcoin, Ethereum and XRP price direction.
FAQs
Q1. Why are BTC, ETH and XRP prices down today?
BTC, ETH and XRP prices fell due to Federal Reserve rate concerns, liquidations, stronger dollar and macro uncertainty. Recovery depends on inflation, rate cuts, liquidity conditions and investor confidence.
Q2. Will Bitcoin, Ethereum and XRP recover after recent crypto market decline?
Bitcoin, Ethereum and XRP recovery depends on Federal Reserve rate cuts, inflation trends, liquidity conditions and investor demand. Lower interest rates and stronger liquidity may support crypto market recovery.