BTC, ETH, XRP, SOL Prices Slide as FOMC Meeting Looms

Major cryptocurrencies brace for impact ahead of the Federal Reserve's next move.

Market Jitters Take Hold

The digital asset market is flashing red, with leading tokens like Bitcoin, Ethereum, XRP, and Solana all seeing notable declines. The collective slump isn't a coincidence—it's a classic risk-off shuffle as traders position themselves before the Federal Open Market Committee (FOMC) announces its latest policy decision. Everyone's trying to guess the Fed's next play on interest rates, and the uncertainty is bleeding straight into crypto valuations.

The Liquidity Litmus Test

Forget the 'digital gold' or 'future of finance' narratives for a moment. When the FOMC meets, crypto often acts like just another high-beta risk asset. Potential shifts in monetary policy directly impact the liquidity environment—the very lifeblood of speculative rallies. Tighter policy hints can swiftly pull the plug on investor enthusiasm, turning paper gains into very real losses. It's a stark reminder that in the eyes of many traditional funds, your decentralized miracle is still a leveraged bet on cheap money.

Navigating the Volatility

This pre-meeting dip showcases the market's heightened sensitivity to macro signals. While the long-term thesis for blockchain adoption remains untouchable, short-term price action is still hostage to pronouncements from a building in Washington D.C. Savvy players see these pullbacks not as a crisis, but as a recalibration—a chance to separate resilient projects from the crowd. The coming days will test conviction, separating those who believe in the technology from those who just enjoyed the ride up. After all, nothing clarifies your investment thesis like watching the Fed casually siphon billions of dollars of market cap out of the sector between lunch and their afternoon coffee.

Tuesday began on a weak note as selling pressure plunged the crypto market down by 2% as the sentiment slipped into FEAR territory. Bitcoin (BTC), the flagship crypto, erased most of yesterday’s gains and slid below $88,000, pulling major altcoins like ETH, XRP, and Solana lower along with the broader market.

ETH, XRP, SOL Follow Bitcoin Price Pull Back

The weakness in Bitcoin quickly spilled over into major altcoins. Ethereum, the second-largest cryptocurrency, dropped around 2.3%, trading near $2,973. While XRP and Solana (SOL) also saw a decline of 2% to 3% drop, reflecting broad-based risk-off sentiment rather than token-specific news.

Other large-cap altcoins, including BNB, Cardano, and Avalanche, also traded lower, showing that today’s MOVE is largely market-wide. 

Why the Crypto Market Is Under Pressure?

Several factors appear to be weighing on prices this morning. First, year-end trading is thin, so even small sell orders are causing sharp price moves. This was seen yesterday when bitcoin briefly jumped above $90,000 before quickly falling back below $87,000.

At the same time, institutional demand is slowing. Spot Bitcoin ETFs saw outflows on nearly 70% of trading days in December, while ethereum also faced steady outflows. However, XRP and Solana ETFs continue to see inflows, offering limited support.

Adding to the caution, investors are waiting for today’s FOMC meeting, looking for signals on inflation and possible rate cuts in early 2026.

Precious Metals Outshine Digital Assets

While crypto struggled, precious metals posted strong gains. Silver jumped to a record $83 per ounce due to supply shortages in China, Dubai, and Australia, pushing its total market value to about $4.3 trillion

Gold also made headlines, briefly hitting a fresh all-time high of $4,552 before pulling back nearly 5%, erasing part of its recent gains. 

Meanwhile, copper extended its December rally, rising as much as 8.4% this month to trade NEAR $5.6, supported by strong industrial demand expectations.

Copper still smashing records into year-end

Pushing fresh highs around $5.70-5.80/lb today on relentless supply crunch + AI/EV/grid demand.

Bullish above $5.50 support, $6.00 calling in 2026.

Aussie miners (BHP/RIO) eating good

Who's holding the red metal into NYE?… pic.twitter.com/aIATceOB0j