Currently, Fed is reducing stimulus support from the economy at a pace of $15 billion per month, but from January, it will increase the momentum by 50%, and the amount will reach $30 billion per month. This decision from the Fed came in after the inflation level reached a 39-year high and raised concerns of economic collapse. To reduce the effects of high inflation, the Fed decided to speed up the pace of its withdrawal of stimulus support to pave the way for rising interest rates in the coming months.

The central bank has also provided many hints that it could increase interest rates three times in the upcoming year for the first time since 2018. This news had a massive positive impact on the US stock market, which ultimately dragged the greenback lower and helped BTC post gains for the day.

Ripple is one of the top 10 cryptos highly influenced by the big movers and shakers in the crypto world like BTC. XRP/USD also followed in the footsteps of BTC and rose for the second consecutive session on Wednesday, but the gains were very limited due to the absence of any significant fundamentals related to Ripple.