Bitcoin, Ethereum, and XRP extended their losing streak on Thursday after fresh U.S. inflation data fueled speculation that the Federal Reserve will raise interest rates at its upcoming policy meeting. The renewed sell-off across major cryptocurrencies highlights the asset class’s continued sensitivity to macroeconomic shifts and central bank signaling.
Inflation Data Triggers Rate-Hike Bets
The latest consumer price figures came in hotter than expected, reinforcing the narrative that the Fed’s tightening cycle may not be over. Markets quickly repriced the probability of a rate hike at the September 15–16 Federal Open Market Committee (FOMC) meeting, sending risk assets — including digital assets — lower.
Crypto Market Reacts to Macro Pressure
Bitcoin slipped below key technical levels, while Ethereum and XRP mirrored the downturn. The correlation between crypto and equities remains elevated, meaning that any hawkish tilt from the Fed tends to weigh on both traditional and digital risk markets simultaneously.
FOMC Meeting in Focus
Traders are now laser-focused on the September 15–16 FOMC gathering. A rate increase — or even hawkish forward guidance — could prolong the current correction in crypto prices. Conversely, a pause with dovish undertones might provide a short-term relief rally.
The September 15-16 FOMC meeting could be weighed on risk assets on the crypto market.
