XRP, Solana, and Dogecoin slumped over 4% ahead of the Federal Reserve’s policy decision, with Bitcoin and Ethereum also declining.

Investors are focused on Fed Chair Jerome Powell’s remarks and the Summary of Economic Projections (SEP), which could shape rate cut expectations.

“Altcoin season may be dictated by Powell this year,” said Bitwise strategist Juan Leon. “If officials add more cuts to the ‘dot plot,’ that would likely boost crypto.”

Crypto lost $1 trillion in value since the Fed’s December meeting, when policymakers signaled fewer cuts than anticipated.

The market had surged previously as the Fed lowered rates, but uncertainty now weighs on risk assets.

Leon expects Powell to take a “cautiously optimistic tone” while maintaining a wait-and-see stance on tariffs and inflation.

He added that altcoins like XRP, Solana, and Dogecoin are now more influenced by macroeconomic factors than regulatory actions.

Vanguard News