Fed’s September Rate Cut Boosts XRP Price, Market Sentiment Turns Optimistic

Background of Fed’s rate cut

Fed Chairman Powell stated that the recent interest rate cut is aimed at addressing the challenges of slowing economic growth and rising unemployment in the United States. The GDP growth rate for the second quarter fell to 1.5%, down from 2.5% in the same period last year. Additionally, the unemployment rate rose to 4.3% in August, the highest level since 2021. The Fed expects to make two more interest rate cuts this year to stimulate economic growth.

XRP price reaction

After the Fed announced a rate cut, the price of XRP rose rapidly. According to data from trading platforms, XRP broke through $3.12 on September 18, reaching a recent high. Analysts believe that the rate cut reduced the yield on traditional assets, prompting funds to flow into risk assets such as cryptocurrencies like XRP.

Market sentiment has turned optimistic

Interest rate cuts not only directly affect the price of XRP but also indirectly drive its pump by altering market sentiment. Investors anticipate that the Fed will continue to adopt loose monetary policies, which boosts confidence in investing in cryptocurrencies like XRP. Furthermore, the rising correlation between XRP and the Nasdaq index indicates that funds are flowing from the traditional stock market into the cryptocurrency market.

Future Trend Outlook

Analysts believe that the XRP price may continue to pump. If XRP breaks through $3.80, it will further confirm its rise trend. However, there are also views that the XRP price may face correction pressure, and investors should remain cautious.

Conclusion

The Fed’s interest rate cut in September had a positive impact on the price of XRP, pushing it to break through recent highs. The rate cut reduced the yields on traditional assets, prompting funds to flow into risk assets such as cryptocurrencies like XRP. Investors should pay attention to the Fed’s future monetary policy trends and the technical changes of XRP to seize investment opportunities.