A surprise rumor has emerged from Citadel Securities ahead of the FOMC meeting on July 28-29, 2026. X account @WatcherGuru, boasting 4.5 million followers, tweeted that the firm expects the Federal Reserve to hike interest rates this week. The tweet, which garnered 5,809 likes, landed on an already fragile crypto market sentiment amid volatility across traditional markets.
The rate hike prediction comes amid turbulent global macroeconomic conditions. South Korean equities took an early hit as the KOSPI index plummeted between 7.5% and 10.84%. This steepest plunge in five months triggered trading halts or circuit breakers, dragging down tech giants like Samsung Electronics and SK Hynix. In the Middle East, the shutdown of Saudi Aramco’s 400,000-barrel-per-day Jazan refinery following Houthi attacks added to the growing list of stock market uncertainties.
Why Are Altcoins Being Dumped First?
Panic in equities and uncertainty surrounding Fed policy quickly spilled over into digital assets, with altcoins on the front lines bearing the brunt. Analysts note that traders tend to de-risk and trim positions in the most speculative assets first during rising macro volatility, subjecting second-tier tokens to far heavier selling pressure than major assets.
XRP is among the tokens clearly reflecting this trend, dropping 5% to $1.05 as investors seek safer ground. Technical data validates this panic sentiment, with XRP’s 4-hour RSI plunging to 25.93 - well below the oversold threshold of 30. XRP’s Chaikin Money Flow also remains stuck at minus 0.12, signaling that sellers are in firm control of price action.
This willingness to sell is further confirmed by on-chain activity. Over 150 million XRP was reportedly moved from private wallets to centralized exchanges within 48 hours. Inflows to trading platforms during times of uncertainty typically indicate that holders are preparing to liquidate their holdings at a moment’s notice.
Money Flows Behind the Panic
Crypto market volatility cannot be separated from institutional maneuvers. Just an hour before FOMC jitters spread, the crypto market recorded a total of $100 million in liquidations. Amid the turmoil, BlackRock’s ETF moved $271 million worth of Bitcoin and Ethereum to Coinbase Prime, a platform frequently associated with ETF share creation or redemption activity.
In the days leading up to the July 28-29 meeting, uncertainty will remain the main theme across markets. For those new to altcoins or holding open positions, trading without stop-losses amid such sentiment swings carries significant downside risk.
Reported via @WatcherGuru on X.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
