The XRP (XRP 1.67%) The cryptocurrency is falling in today’s trading. The crypto token price is down 6.6% in the last 24 hours of trading as of 6:15 p.m. ET. In the meantime, Bitcoin was down 4%, and Ethereum fell by 5.3%.

XRP is losing ground today, coinciding with a broader crypto market decline. Investors are paying more attention to potential macroeconomic risk factors and are pulling money off the table after a year of explosive gains.

Crypto investors are still digesting the Fed’s latest policy outlook

The crypto market has been very volatile lately. Last Wednesday, the Federal Reserve announced a 25 basis point interest rate cut. The move was in line with investors’ expectations, but the central bank gave a cautious outlook for next year and caused stock and crypto markets to plunge. Instead of the previously predicted four quarter-point rate cuts, it now looks like only two cuts will occur.

Cryptocurrencies and other speculative assets tend to perform much better when interest rates are low, and the Fed’s new outlook has led to continued volatility in cryptocurrencies and stocks. With many tokens seeing fantastic gains as trading continues in 2024, some investors are viewing the new interest rate outlook as a good time to take profits. While XRP is down 15% from its five-year high due to recent setbacks, it is still up about 270% in 2024 trading.

What’s next for XRP?

Investors are hoping that the upcoming change in the US presidential administration will provide new bullish impetus for XRP. With the new Trump administration, Securities and Exchange Commission (SEC) Chairman Gary Gensler is expected to resign. With an impending leadership change, it is possible that some ongoing legal issues the SEC is pursuing against Ripple and XRP could be dropped.

President-elect Trump also nominated former SEC Commissioner Paul Atkins for the post. Atkins is widely seen as a positive for the crypto industry. In general, the new Trump administration is expected to provide an unprecedented level of support to the crypto space. However, investors should be aware that there is a risk that macroeconomic pressures will outweigh the benefits of otherwise positive policy and regulatory changes.