Fed Fears Send Crypto to the Ground: Bitcoin Falls Below $79,000, XRP Slides 28%

Bitcoin slid below $78,950, a $4,000 drop that rattled the crypto ecosystem as traders pivot toward a potential Fed rate hike.

Fed Fears Send Crypto to the Ground

The anticipation of higher U.S. interest rates has prompted a sell‑off across most major tokens, with Bitcoin, Ethereum, and stablecoins retreating while only a handful of altcoins hold ground.

Ripple's Reckoning: XRP Slides 28%

XRP, the only token that saw a significant decline, fell 28% to $0.48 from $0.66, marking the steepest one‑week loss for any crypto asset.

On‑Chain Calm Amid Market Turbulence

On‑chain metrics indicate that miner activity remained largely unchanged, with the hash rate holding steady at 115 EH/s and UTXO set growth slowing to 0.4%.

Institutional Inflows: ETF Flows Dry Up

ETF‑driven inflows into Bitcoin fell by $1.2B this week, signaling a retreat by institutional investors who had previously been bullish on the asset.

What This Means for Portfolio Managers

■Bitcoin price fell to $78,950, a $4,000 drop from the previous close.

■XRP dropped 28% to $0.48 from $0.66.

■Ethereum remained flat at $4,200.

■Total market cap decreased by $12B.

In my view, the market's reaction underscores the sensitivity of crypto to macro‑policy signals, especially when institutional flows wane and on‑chain activity stalls. Portfolio managers must reassess risk exposures and consider reallocating to more resilient assets or defensive strategies amid heightened Fed‑rate uncertainty.