The cryptocurrency market is experiencing heightened volatility, with Bitcoin, Ethereum, and XRP all staging significant moves as investors focus on the upcoming Federal Reserve Jackson Hole meeting. Bitcoin has recently dropped to a two-week low around $112,425, while Ethereum is struggling to break through key resistance at $4,218. XRP is fluctuating between $2.88 and $2.99, attempting to recover after declining from recent highs.

This downturn comes after a period of strong rallies, as traders appear to be locking in profits and reducing risk ahead of critical economic signals from the Fed. The market is now waiting for comments from Fed Chair Jerome Powell, with many analyzing how changes in monetary policy could impact risk-sensitive assets like cryptocurrencies. Potential shifts in interest rates or messaging about inflation could drive the next big move in digital assets, either reigniting bullish momentum or prompting further declines.

Despite the recent sell-off, trading activity remains high, signaling continued investor interest and speculation about what comes next. Some analysts believe that clearer direction from the Fed could set the stage for the next crypto surge, particularly if monetary policy turns more supportive of risk assets. Others warn that lingering uncertainty and tight financial conditions may keep pressure on prices in the short term.

As the market digests these developments, all eyes remain on the Fed to see whether its next steps will trigger another boom or add to the recent volatility in crypto. Traders should remain cautious, watch for key technical levels, and stay informed as global economic events continue to shape the outlook for Bitcoin, Ethereum, and XRP.