Fed Rate Hike Could Hit XRP Hard: ChatGPT Reveals How Low Ripple’s Price Could Go

The monetary landscape in the United States changed in the past week or so, first after the hawkish stance taken by the current Federal Reserve Chairman, Kevin Warsh, and then following last Friday’s strong US jobs report.

As such, the expectations have changed, with investors and experts pricing in a potential rate hike for the next FOMC meeting scheduled to take place on September 15-16. After answering how this could impact BTC, we turned our focus to XRP, whose case was described as “arguably more interesting than bitcoin’s,” by ChatGPT.

What Happens to XRP Then?

With the current odds on prediction markets at well over 50% for a rate hike in September, the warning signs for risk-on assets are fully flashing. This was felt on Friday briefly after the jobs report, with BTC dropping by $3,000 and XRP slumping from $1.45 to under $1.40, where it found support.

ChatGPT estimated that the cross-border token is likely to react “more violently to a Fed hike” even though it has two cushions: strong ETF demand and the CLARITY Act process. The initial reaction to a 25 bps increase on September 16 would be a 4%-8% decline, the AI predicted. From the current levels, this would materialize in a dip below $1.30.

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