The Federal Reserve has kept interest rates unchanged at 3.50%–3.75%, maintaining a hawkish stance as inflation concerns and geopolitical risks cloud the economic outlook.
Analyst Illia Otychenko said the “higher for longer” rate environment is likely to persist, with potential rate cuts delayed until at least mid-2026 or later due to limited room for policy easing.
“Bitcoin has some buffer here, since it increasingly trades as a macro hedge,”
Said CEX.IO lead analyst Illia Otychenko, highlighting its resilience amid geopolitical tensions and stagflation fears.
Bitcoin has surged around 20% since the Iran war began, briefly topping $75,600, although it has since pulled back 4.5% to trade near $71,300.
XRP, however, faces a “more straightforward” challenge as its performance is closely tied to risk-on sentiment and liquidity conditions, which remain constrained without rate cuts.
The token has risen as much as 25% to $1.60 during the same period and briefly reclaimed its position as the fourth-largest cryptocurrency by market capitalisation before slipping 5% to $1.46.
Otychenko said XRP is unlikely to stage a sustained rally without a meaningful catalyst such as regulatory clarity or new partnerships, as macro conditions continue to favour safer assets over speculative tokens.
At the time of reporting, XRP price was $1.46.