Cryptocurrency market on edge as stalled US-Iran peace talks fuel geopolitical uncertainty ahead of the US Fed rate decision. Bitcoin (BTC), Ethereum (ETH), and XRP are witnessing increased volatility, with traders anticipating sharp moves in either direction after Jerome Powell’s press conference.
Crypto Fear & Greed Index slipped from 33 to 26 (fear) amid uncertainty in the crypto market. Altcoins such as Solana (SOL), BNB, Dogecoin (DOGE), Hyperliquid (HYPE) and Cardano (ADA), among others, are also wavering amid outflows from spot ETFs and massive crypto liquidations.
Bitcoin, ETH, XRP Traders Brace for Geopolitical Risks as US-Iran Talks Stall
The US-Iran peace talks stalled, with no signs of the war ending as it approaches the two-month mark. Meanwhile, President Donald Trump is dissatisfied with Iran’s latest peace proposal to end the war and reopen the Strait of Hormuz, but delay the nuclear deal.
With President Trump skeptical over accepting Iran’s proposal, oil prices surged above $99 per barrel on Wednesday. Bitcoin, ETH, and XRP also saw declines. Moreover, it has prompted the UAE to announce its exit from OPEC for greater flexibility in adapting to shifting market conditions.
President Trump has instructed his aides to prepare for an “extended blockade” of Iran to “compel nuclear capitulation,” WSJ reported on April 29. He plans to continue “squeezing Iran’s economy and oil exports” through a prolonged blockade of the Strait of Hormuz.
Notably, the US blockade of the Strait of Hormuz caused shipping transits to plummet to record lows. It is expected to push US gas prices even higher, keeping inflation elevated and impacting the Fed rate decision.
Fed Rate Decision Looms Today
The FOMC meeting will conclude on April 29, with markets pricing 100% odds of the Fed keeping interest rates steady. CME FedWatch Tool indicates no rate cuts this year.
Bitcoin, ETH, and XRP traders will closely watch Fed Chair Jerome Powell’s press conference for signals on future rate cuts, especially amid sticky inflation risks tied to elevated energy costs from the US-Iran war.
With no Fed rate cut widely anticipated, hawkish stances or delayed easing could strengthen the US dollar and pressure the crypto market. Whereas any dovish hints might trigger further upside in Bitcoin, ETH, and XRP.
Bitcoin, ETH, XRP Gains Ahead of Fed Rate Decision
Bitcoin price jumped 2% in the past 24 hours, currently trading at $77,245. The 24-hour low and high are $75,673 and $77,439, respectively. Furthermore, trading volume has decreased by almost 5% over the last 24 hours as traders brace for stalled US-Iran peace talks and the Fed rate decision.
FOMC decision will shape Bitcoin’s next move as liquidity improves. Ted Pillows predicts a rally towards $80,000 if the monthly close is above $74,434. A monthly close below this level points to $79,500 as the most likely local top.
ETH price also climbed 2% to $2,328 over the past few hours. The intraday low and high are $2,259 and $2,340, respectively. Analyst Ali Martinez noted that Ethereum is attempting to reclaim its realized price as support, currently at $2,335. A monthly close above the level will trigger a further rally.
Meanwhile, XRP is trading at $1.39, up more than 1% ahead of Fed rate decision. It jumped from a 24-hour low of $1.37 amid XRP supply shock on Binance. The buying sentiment in the derivatives market further supports upside momentum.