XRP Price Retreats as a Sea of Red Spreads Across the Cryptocurrency Industry Ahead of the Federal Reserve's Decision

Ripple (XRP) dropped by over 5%, erasing most of the gains made on Tuesday after the RLUSD stablecoin launch.

XRP price declined on Wednesday, erasing most of the gains made on Tuesday after the launch of the RLUSD stablecoin. The decline was part of a broader sell-off in the cryptocurrency industry ahead of the Federal Reserve’s final interest rate decision for the year.

XRP price dropped by over 5%, reaching a minimum price of $2.79. The decline erased most of the gains made on Tuesday after the launch of the RLUSD stablecoin. XRP price then recovered slightly to trade at $2.82 by early morning.

The decline in XRP price was part of a broader sell-off in the cryptocurrency industry. The total cryptocurrency market capitalization declined by 1.5% to reach $3.2 trillion. Bitcoin price dropped by 0.5% to reach $69,145, while Ether price declined by 1.1% to reach $4,975.

The sell-off in the cryptocurrency industry was driven by nervousness ahead of the Federal Reserve’s final interest rate decision for the year. Economists expect a “hawkish cut,” with the Fed reducing rates by 0.25% while signaling a potential pause in 2025.

However, XRP price may have potential catalysts in the coming months. The new Securities and Exchange Commission may decide to abandon its appeal and approve a spot ETF. Ripple Labs may also decide to file for an initial public offering.