Daily Crypto Signals: Bitcoin Tumbles Amid Rate Cut Uncertainty; XRP Selloff Intensifies
The crypto market is experiencing significant turbulence with Bitcoin retreating 3% to around $81,000 and XRP facing a potential 20% drop due to technical pressures and exclusion from active US acquisition plans. The market downturn comes as Federal Reserve Chair Powell signals no rush to cut interest rates and Trump’s crypto reserve plans disappointed many investors.
Fed Interest Rate Policy Creating Market Uncertainty
Federal Reserve Chair Jerome Powell recently reaffirmed that the central bank is “in no hurry” to adjust interest rates, suggesting potential delays in the anticipated rate cuts for 2025. Should the Fed delay rate cuts across 2025, network economist Timothy Peterson cautioned that this might cause a more general market collapse and possibly force Bitcoin back toward the $70,000 level.
“What it needs is a trigger. I think that trigger may be as simple as the Fed not cutting rates at all this year,” Peterson stated on March 8. Using historical models, Peterson estimates that if a bear market begins, Bitcoin could decline by 33%, bringing it down to around $57,000 from current levels, though he believes market support will likely establish a floor around the $71,000 range.
Bitcoin (BTC) Faces Downward Pressure Following Reserve Announcement
Following the letdown of President Trump’s Strategic Bitcoin Reserve announcement, Bitcoin BTC/USD keeps sliding. With liquidation statistics indicating rising pressure, the cryptocurrency has dropped from its all-time high of $100,000 in December to current levels of $81,000.
The executive order signed by President Trump on March 7 exposed that the government intends to use Bitcoin seized in criminal cases instead of buying it straight from the market, therefore causing a 6% price decline at the time of revelation. Notwithstanding this setback, regulatory authorities such as Fideum CEO Anastasija Plotnikova pointed out the importance of government acceptance of Bitcoin: “Not that long ago, even the idea of a BTC Reserve held and supported by a federal government was a revolutionary idea.”
Although Michael Saylor, the founder of MicroStrategy, has argued for the US government to purchase up to 25% of Bitcoin’s total production over the next ten years, technical signs point to possible more decline, so current market mood is still wary.
Ethereum (ETH) Faces Hardware Scaling Challenges
Industry experts seem to believe that future scaling of Ethereum ETH/USD depends more on hardware acceleration than on software solutions. Ethereum fails to satisfy the needs for widespread adoption, which would involve thousands of transactions per second, processing just 10 to 62 transactions per second now.
Co-founder of Cysic Leo Fan likened running Ethereum now to “trying to play a modern game on a 1980s laptop,” implying that although layer-2 roll-ups offer some respite, they eventually act as stopgap solutions. Though it introduces account abstraction and improved validator operations, the next Pectra upgrade does not notably solve the basic scale issues.
Experts contend that Ethereum runs the danger of lagging behind rivals like Solana without specific hardware, therefore undermining its position as the settlement layer for the blockchain community. Ethereum competes not only with other blockchains but also with computationally demanding sectors like artificial intelligence for resources, which fuels this hardware against software debate.
XRP (XRP) Risks 20% Decline After US Reserve Disappointment
Driven by both technical and fundamental elements, XRP XRP/USD is displaying signals of a possible 20% price decline to about $1.46. Technically, XRP/USD is creating a symmetrical triangle on its weekly chart—a pattern that historically resolves in either direction but usually results in losses in the crypto markets.
The basic pressure comes from dissatisfaction following the March 7 White House Crypto Summit. When it was made clear that XRP was named among Ethereum, Solana, and Cardano ADA/USD as examples—though these weren’t official selections—initial hope about XRP’s possible inclusion in a US strategic crypto reserve rapidly dissipated. Furthermore, the US government’s approach is on using current assets instead of fresh acquisitions.
With analysts saying this could indicate a distribution phase where big investors sell shares to regular purchasers following the 600% increase from November 2024 to January 2025, trading volumes for XRP have lately climbed to record levels. Further supporting this distribution theory is the drop in XRP whale holdings from 94.21 billion to 90.21 billion within the past year.
Solana (SOL) Down 29% in 2025 Despite Liquidity Surge
One of three cryptocurrencies listed in President Trump’s Digital Asset Stockpile, Solana SOL/USD has dropped around 29% since the beginning of 2025, following its declining pattern. Given that roughly $9.5 billion worth of freshly produced USDC stablecoins have entered the Solana ecosystem since January 1, the fall is especially noteworthy.
Analysts believe that rather than increasing SOL’s price, this fresh liquidity has gone into memecoins. Since the official Trump (Trump) token was launched, the bitcoin is currently down 49% from $261 on January 18 to roughly $134 on March 9.
Following a spate of memecoin frauds, investors looking for safer assets could possibly be responsible for some of Solana’s downturn. With investor money mostly going to Ethereum, Arbitrum, and the BNB Chain, the network suffered roughly $485 million in outflows in February. The underwhelming performance coincides with a more general market decline whereby the overall bitcoin market value has dropped almost 17% starting in 2025.
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