Bitcoin (BTC) and XRP 'stumble' simultaneously as US bill stalls... Will they be shaken again by Fed interest rates?

▲ US Congress, cryptocurrency regulation, virtual assets/AI generated image

Immediately after the US cryptocurrency market structure bill stalled in the Senate, Bitcoin (BTC) and XRP plummeted, shifting market attention to the Federal Reserve's interest rate decision.

According to BeInCrypto on September 16 (local time), the US Senate recorded 49 votes in favor and 50 against in the vote on the motion to end debate on the US cryptocurrency market structure bill the previous day. 60 votes were needed to begin deliberation on the bill. Immediately after the vote, XRP dropped by approximately 10% to around $1.30, and Bitcoin fell below $76,000. Liquidation of leveraged positions also exceeded $300 million within minutes.

This vote is not a procedure to determine the final passage of the bill. Republican US Senator Thom Tillis stated, "This is not the end of the US cryptocurrency market structure bill," and announced that bipartisan negotiations would continue. In contrast, senior analyst Eric Balchunas assessed that the failure to end the debate significantly lowered the chances of the bill's passage.

With regulatory uncertainty growing again, the market is highly attentive to the Federal Reserve's (Fed) September 16 interest rate decision. The market reflects an approximately 92.5% probability of a 0.25 percentage point increase. If the increase is implemented, the federal funds rate target range will rise to 3.75-4%, marking the first interest rate hike since 2023. BeInCrypto reported an analysis suggesting that the remarks of Fed Chair Kevin Warsh at the press conference are more likely to determine market reaction than the interest rate decision itself.

Cryptocurrency trader Michaël van de Poppe suggested that Bitcoin might be retesting recent lows and showed interest in buying the dip in the $74,000-$75,000 range. XRP reacted more sensitively to macroeconomic news, leading the sell-off. The market is watching the $1-$1.10 range as a key support area.

The simultaneous emphasis on the US cryptocurrency market structure bill's failure and the possibility of an interest rate hike has increased short-term volatility. BeInCrypto analyzed that if the Fed's monetary policy stance is stronger than expected, the downward pressure on Bitcoin and XRP could intensify, while a softening of remarks could reduce the overall burden on risk assets.

[Article Summary]

-The US cryptocurrency market structure bill failed to secure the required 60 votes in a Senate procedural vote, with 49 votes in favor and 50 against.

-XRP fell by approximately 10% to around $1.30, Bitcoin dropped below $76,000, and liquidations exceeded $300 million within minutes.

-The market reflects an approximately 92.5% probability of a 0.25 percentage point interest rate hike by the Fed and is watching Fed Chair Kevin Warsh's remarks closely.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*