XRP Falls to $1.06 in June 2026 — Fed Rate Hike Fears Hit Crypto Despite RLUSD Boost

Quick overview

Ripple (XRP) coin failed to stop its previous bearish rally and remains under pressure around the $1.06 level. However, the reason for its downward trend could be associated with the ongoing uncertainty in the global economy.

Meanwhile, the US and Iran are telling completely different stories about their nuclear discussions, which is confusing investors and creating fear and uncertainty in the market.

On the other hand, the markets are currently thinking that the Federal Reserve will increase interest rates by at least 0.25 percent in September. This is affecting the crypto market negatively as people are taking their money out of risky assets like cryptocurrency and investing it in safer places. As a result, the XRP coin is falling.

At the time we are writing this article, the XRP coin is trading at the $1.08 level, showing more than 2 percent losses on the day.

Fed Rate Hike Fears Weigh On Crypto Market

On the US data front, the previously released CPI report shows that inflation reached 4.2 percent per year in May, which is up from 3.8 percent in April, and this was seen as the highest level in more than thirty years.

As a result, the market is thinking that the Fed will likely raise interest rates in September. At this time, the Fed is keeping its main rate at 3.5 percent to 3.75 percent, but after the new inflation data was released, traders believe there is a 70 percent chance that rates could increase by 0.25 percent or more, whereas this chance was only 44 percent ust one week ago.

Furthermore, Fed Chair Kevin Warsh said on June 17 that the Feds target is to bring inflation down to 2 percent so that prices remain stable. This statement also reinforces the chances of rising interest rate, which could have a negative impact on the crypto market and could be bad for coins like XRP because higher borrowing costs and a stronger dollar force people to move away from risky assets.

More RLUSD Activity May Boost XRP In Future

On the other side, the good thing is that Ripple’s new stablecoin RLUSD, is bringing a lot of activity to the XRP network, due to which there are more users, more money, and more trading. In addition, the network’s transactions are increasing, but XRP’s price is still not rising because this new money is mostly moving around RLUSD, not in buying XRP.

Previously, network activity used to increase along with the XRP price, but now this has become separate. This activity can help XRP in the future and the price may recover.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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