DOGE, XRP Decline 3% Amid Bitcoin Traders’ Focus on Upcoming Fed Meeting

Bitcoin Steady as Market Awaits Fed Decision, Altcoins Face Pressure

QCP Capital analysts suggest that while a rate cut is unlikely, any dovish signal from the Federal Reserve could ignite a bullish breakout for bitcoin and potentially boost the broader crypto market.

On Tuesday, the crypto market remained largely stable, with bitcoin (BTC) holding steady while altcoins saw moderate declines. Dogecoin (DOGE) and XRP led losses among major cryptocurrencies, each falling over 3% in the past 24 hours. The CoinDesk 20 Index (CD20), which tracks leading digital assets, dipped 2%.

The subdued trading comes as investors brace for the Federal Open Market Committee (FOMC) meeting on Wednesday. The outcome is expected to shape monetary policy and influence risk assets, including cryptocurrencies.

The Federal Reserve is widely anticipated to keep interest rates at 4.25%–4.50%, but traders will closely monitor Fed Chair Jerome Powell’s remarks. A hawkish outlook—suggesting higher-for-longer interest rates—could weigh on bitcoin, while a dovish stance could provide the catalyst for a fresh rally.

“A rate cut is not expected this week as the U.S. shifts from fiscal expansion—where growth was fueled by government spending—to [President Donald] Trump’s focus on deficit reduction,” QCP Capital traders noted in a market update. “This means monetary policy will play a larger role. While no immediate changes are likely, even a slightly dovish tone from Powell could be enough to push bitcoin higher.”

QCP Capital also pointed to potential capital flows moving away from Trump-driven speculative trades in NASDAQ and bitcoin toward undervalued markets in Europe and China. Historically, crypto markets have taken time to react to shifts in global liquidity, the firm added.

Agne Linge of WeFi noted that broader market sentiment remains weak, with the crypto fear and greed index at 22, signaling “extreme fear” as investors weigh economic uncertainty, inflation risks, and geopolitical tensions.

“In the U.S., the S&P 500 and Nasdaq Composite have now seen four consecutive weeks of declines, while the Dow Jones suffered a 3.1% loss last week—its worst in nearly two years. While the recent sell-off was sharp, market uncertainty remains high for the rest of the month,” Linge explained, warning that macroeconomic pressures could drag bitcoin prices lower.

Ryan Lee, chief analyst at Bitget Research, said that bitcoin’s price movement remains constrained within a tight range, with the next major shift likely dependent on the Fed’s messaging.

“Bitcoin has been consolidating post-rally, and traders are closely watching key support levels between $82,000 and $85,000,” Lee told CoinDesk in an email. “If the Fed’s tone is hawkish, we may see a dip toward $75,000–$80,000. However, a dovish Fed could provide the boost needed to send bitcoin toward $90,000.”

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