Bitcoin Slips to $63,327, XRP Sheds 5% as Traders De-Risk Before Fed Decision

Bitcoin opened Tuesday at $63,706, a 2.5% drop from the previous session’s opening level, before extending losses toward $63,327 as traders trimmed positions ahead of the Federal Reserve’s policy decision. XRP moved in tandem, sliding roughly 5% on the day, as both assets absorbed a wave of leveraged liquidations and spot ETF outflows heading into the announcement.

The synchronized pullback across the two largest tokens by market capitalization underscores how sensitive crypto markets remain to macro catalysts, even as institutional adoption through ETFs has grown. Selling pressure intensified as leveraged long positions were unwound, adding to the drawdown in both Bitcoin and XRP.

ETF Outflows Add to the Pressure

Spot ETF outflows contributed to the selloff, according to market reports, as investors pulled capital ahead of the rate decision rather than risk holding positions through the announcement. That flow reversal compounded the impact of forced liquidations on leveraged derivatives desks, amplifying downside moves in both BTC and XRP.

For holders, the combination of ETF redemptions and cascading liquidations is a reminder that crypto’s institutional on-ramps can cut both ways: the same vehicles that channel fresh demand into Bitcoin and XRP during rallies can just as quickly accelerate declines when sentiment turns defensive around a macro event.

Markets Wait on the Fed and Kevin Warsh

Traders are now focused on the Federal Reserve’s policy announcement and on comments expected Wednesday from Kevin Warsh, whose remarks are being watched closely for signals on the future path of interest rates. Uncertainty over the rate outlook has been a key driver of the pre-decision de-risking seen across both Bitcoin and XRP.

Interest-rate expectations have direct implications for risk assets broadly, and crypto markets have shown repeated sensitivity to shifts in the Fed’s tone. A more hawkish-than-expected message could extend the current pullback, while dovish signals or clarity on the rate path could help stabilize prices in the near term.

Read more: CME Data Shows 31.5% Odds on Rare Fed Move, XRP Slips 5% Pre-FOMC

Why It Matters

The pre-FOMC pullback in Bitcoin and XRP illustrates how quickly leverage and ETF flows can amplify moves around scheduled macro events. For traders, the levels near $63,300 on BTC now act as a short-term reference point, while the roughly 5% XRP decline highlights the altcoin’s continued correlation with Bitcoin during periods of macro-driven volatility.

Until the Fed’s decision and Kevin Warsh’s Wednesday comments are digested, both assets are likely to trade with elevated sensitivity to any hints about the rate path, keeping liquidation risk and ETF flow direction firmly in focus for holders and traders alike.

Sources

• coingape.com
• cryptonews.com