Bitcoin has reclaimed the $77,500 level on Thursday and is gearing up to breach the $78,000 zone. The leading cryptocurrency dipped to the $76,200 level on Wednesday, sparking fears in the market that a downturn could be on the cards. The price reclaim is a positive signal that the larger cryptocurrency market wanted to see. XRP also remains on the front foot this month with prices hovering around the $1.37 zone.
It has held on to its support levels and maintained a healthy balance between $1.40 and $1.30. However, the broader cryptocurrency market might soon face heightened volatility as the Fed is scheduled for an interest rate decision on September 15 and 16. The market mostly fluctuates on the heels of the meeting, leading to instability. XRP and Bitcoin are likely to be affected as the days progress towards the meeting.
Also Read: XRP Faces 6% Weekly Price Dip: How Low Will It Go?
Will XRP & Bitcoin Head South in September?
Leading cryptocurrency exchange platform Bitfinex wrote in its recent blog, cautioning users about the market’s performance during the Fed interest rate decision. It also provided historical context on Bitcoin and XRP, saying that the month has been bearish for years. The trading platform expects a price pullback, warning traders to be on their toes mid-September.
“September has historically been a bearish month for Bitcoin, with an average return of -2.95 percent since 2013. With August’s momentum carrying into the month, we expect that any intra-month correction leaves the odds in favour of continuation higher on the higher timeframes,” read the report. This puts XRP and Bitcoin on a sticky wicket, and both cryptocurrencies might have peaked in value.
The sudden rise in value came only after President Donald Trump announced last month that the US is considering buying a “sizeable” amount of Bitcoins. This led to major cryptocurrencies surging in value, including Ripple’s XRP. The market has to sustain the uptick for another month to prepare itself for the next leg. The Fed meeting will decide which direction the market takes in the next two weeks.