Crypto Faces Bearish Pressure Amid Fed Rate Cut Signals - Market Outlook and Potential Impacts

CRYPTO MARKET FACES SUSTAINED BEARISH PRESSURE AMID FED RATE CUT SIGNALS

The cryptocurrency market continues to grapple with significant headwinds as major assets decline and institutional momentum falters. Over the past 48 hours, the sector has experienced pronounced selling pressure driven by broader macroeconomic concerns and shifting investor sentiment.

XRP, the fourth largest cryptocurrency by market capitalization, saw over 117 million dollars worth of tokens moved among unknown wallets on February 17th, sparking speculation about whale capitulation. The asset has declined 2.69 percent over the last 24 hours, trading at 1.45 dollars as of recent data. XRP ETFs that launched with strong initial performance have subsequently failed to maintain momentum, recording little to no capital intake in recent days.

Worldcoin experienced steeper losses, slipping below 0.40 dollars to trade at 0.38 dollars after major whale activity. A wallet associated with Justin Bram sold 14.19 million WLD tokens valued at approximately 5.7 million dollars. The altcoin's exchange flow balance jumped to 14.18 million WLD on February 17th, indicating heavy selling activity. Worldcoin's stock-to-flow ratio collapsed from 171 thousand to 2.4 thousand, suggesting increased available supply and accelerated downside pressure.

These declines reflect broader market weakness, with Bitcoin down 44 percent since late 2025 as investors reassess artificial intelligence investment returns and corporate profitability implications. The S&P 500 has retraced to October 2025 levels, with selling pressure cascading across crypto markets through margin calls.

However, some countertrends emerged. Ripple's stablecoin RLUSD crossed 1.5 billion dollars in market capitalization following integration on Binance's XRP network and new listings on HashKey and OSL exchanges. Grayscale reported sustained institutional demand for XRP, noting that advisors consistently hear about the asset from clients, positioning it as the second most discussed cryptocurrency after Bitcoin.

Federal Reserve officials signaled potential rate cuts in 2026 if inflation continues declining toward the 2 percent target, with consumer inflation at 2.4 percent in January. This sparked crypto market uncertainty, though price responses remained muted. Analysts debate whether the market has bottomed, with some detecting accumulation activity among long-term Bitcoin holders and pointing to prior cyclical patterns, while others warn of further downside risks if selling pressure persists.

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This content was created in partnership and with the help of Artificial Intelligence AI