Cardano’s ADA and XRP took a nosedive on a rather tepid Tuesday, leading losses among the major cryptocurrencies. The crypto community is on tenterhooks, waiting for the Federal Reserve’s next move in their forthcoming FOMC meeting. Speculation is rife that interest rates will remain unchanged, but all eyes will be on Fed Chair Jerome Powell for any hints that might shape future market maneuvers.
Market Shivers and Shakes
Bitcoin, the stalwart of digital currencies, managed to cling to its position above the $94,000 mark, despite a brief dip below it on Sunday. This giant of the crypto world has been treading water, exhibiting a curious pattern of range-bound activity. Meanwhile, ADA shed nearly 4% of its value, with XRP mirroring this decline. Ether (ETH) saw a smaller dip of nearly 1%, while BNB Chain’s BNB bucked the trend with a 1.3% rise. Memecoin darling Dogecoin (DOGE) wasn’t so lucky, sliding by 2% over the past day.
The broader crypto landscape, as captured by the CoinDesk 20 (CD20) index—a liquid benchmark tracking the heftiest tokens by market cap—registered a slight decline of over 1.8%. This mirrors the cautious sentiment seen in our recent Crypto Daybook Americas: All Eyes on Jobs, Fed as Bitcoin Prepares for Breakout Rally, where market participants are keenly observing economic indicators.
The DeFi Surge
In a fascinating twist, certain DeFi tokens such as AAVE, Curve’s CRV, and Hyperliquid’s HYPE have been basking in the limelight, drawing increased demand over the last week. This shift seems to signal a trader move towards projects boasting robust fundamentals and enticing yield mechanics. Kay Lu, CEO of HashKey Eco Labs, noted in a Telegram chat with CoinDesk, “As memecoins fall out of favor, traders are turning to projects with stronger fundamentals and token economics.”
Lu’s sentiment reflects a broader trend: DeFi ecosystems are reaping the benefits of this pivot, especially as Bitcoin’s volatility takes a breather and macroeconomic uncertainties persist. “We’re hopeful to see the DeFi trend continue as Bitcoin maintains decreased volatility and crypto acts as a hedge for economic uncertainty,” Lu added. Hyperliquid’s HYPE token has been riding high, leading the top 100 tokens with a staggering 72% surge over the past week, while AAVE and CRV have experienced impressive gains of up to 40%.
Powell’s Words in the Spotlight
Traders spanning the crypto and traditional finance domains are laser-focused on this week’s FOMC interest rate announcement. While the consensus suggests a pause in rate hikes, the air is thick with uncertainty, fueled by concerns over inflation, tariffs, and the ongoing U.S.–China trade saga.
“We don’t expect the FOMC to trigger a major move in markets,” said Augustine Fan, Head of Insights at SignalPlus, in a Telegram message. “It’s a coin flip on direction. Crypto will likely take cues from broader earnings growth and how the economy digests the impact of recent trade policies.”
Recent stock market resilience suggests that investors are factoring in only a mild recession risk, estimated at around 8%—a stark contrast to the more bearish signals emanating from bond markets and macroeconomic forecasts, Fan elaborated. This cautious optimism is echoed in Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception, highlighting the complex interplay between crypto and traditional markets.
The backdrop to these developments includes President Trump’s recent statement confirming no immediate plans for talks with China, which has somewhat dampened hopes for a breakthrough in U.S.–China trade negotiations. Yet, the prospect of separate trade agreements has helped maintain a semblance of risk appetite.
Looking Ahead
The cryptocurrency market is on tenterhooks, as the outcome of the upcoming FOMC meeting could set the tone for the weeks to come. As traders and investors brace for potential shifts in the economic landscape, the DeFi sector appears poised to capture further attention, riding the wave of increased interest in projects with solid fundamentals.
Yet, the broader question remains: Can the DeFi surge sustain its momentum in the face of macroeconomic fluctuations? As we watch the Fed’s next moves and geopolitical developments, the crypto market’s resilience will undoubtedly be put to the test.
Source
This article is based on: Cardano’s ADA, XRP Slide as Bitcoin Traders Await ‘Coin-Flip’ FOMC Meeting
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
