Top Reasons Why Crypto Market Is Falling Ahead of FOMC Decision
Highlights
- Crypto Market tumbles as Senate loss and FOMC uncertainty intensify.
- Crypto ETF outflows indicate institutional demand waning ahead.
- XRP price hovered below $1.30 after dealing with selling and regulatory uncertainty.
The Crypto market fell 1.65% over 24 hours, reducing its total value to $2.59 trillion on Wednesday ahead of the FOMC decision.
The Fear and Greed Index reads 63, showing greed despite the latest market corrections.
Bitcoin price hovered near $75,000, Ethereum remained below $2,400, and XRP slipped beneath $1.30. That backdrop has kept market participants increasingly defensive.
Crypto Market Dip Ahead of FOMC Decision as Rate Hike Fears Rise
The Federal Reserve will make its decision at 2:00 p.m. ET, and then Warsh will speak 30 minutes later.
According to FedWatch data, there’s a 92.5% chance of a 25-basis-point increase. That move would lift the target range from 3.50%-3.75% to 3.75%-4.00%.
Higher rates typically squeeze speculative assets, drive up the cost of borrowing and increase the appeal of safer assets.
A hold would indicate relief buying, while strong calls for more gains would lengthen the Crypto Market Slide.
The outlook is further complicated by crude oil prices pushing above $100.
Persistent Middle East tensions have supported oil, strengthening arguments for tighter monetary policy.
CLARITY Act Senate Setback Deepens Regulatory Uncertainty
On September 15, the Senate voted 49-50 to reject cloture on the CLARITY Act. Approval of the proposal required 60 votes to go to a full debate.
The failure left the hopes of near-term trading and oversight of digital assets hit a setback.
XRP was more impacted by policy-sensitive tokens, which saw an 8.18% drop during the general sell-off in the Crypto Market.
CLARITY Act failed, but crypto isn’t stopping.
We have 2 more important crypto bills today:
🇺🇸 Crypto Tax Bill:
Could make small crypto transactions and fees easier to use without triggering taxes.🇺🇸 Strategic Bitcoin Reserve Bill:
Could lock the US government’s…— Ash Crypto (@AshCrypto) September 16, 2026
The measure lives on a procedural level but has been whittled down in its chances before the November midterm elections.
House committees will now be considering two very different measures that may provide some support.
Qualifying transaction fees of $10 or less would be exempt under the Digital Asset Tax Certainty Act.
The American Reserve Modernization Act will leave approximately $25 billion worth of Bitcoin in government hands, at least for 20 years.
BTC, ETH and XRP ETFs Show Weakening Institutional Demand
U.S. spot Bitcoin ETFs recorded $450 million in net outflows on Tuesday. One day earlier that was reversed by $160 million in inflows.
Ethereum took a loss of approximately $141 million after moving in for a sum of $121 million on Monday and $216 million on Friday.
XRP ETF trading volume did not see any notable activity since the ETFs garnered approximately $11 million worth of trading volume last session.
According to SoSoValue data, U.S. spot Bitcoin ETFs saw total net outflows of $450 million on September 15 Eastern Time, led by Fidelity’s FBTC with a net outflow of $215 million. Meanwhile, spot Ethereum ETFs recorded total net outflows of $141 million, led by BlackRock’s ETHA… pic.twitter.com/pgvStAykyH
— Wu Blockchain (@WuBlockchain) September 16, 2026
They continue to receive $1.71 billion in total inflows and $1.41 billion in assets under management.
Some short-term pressure can be expected to increase in the Crypto Market due to more and more redemptions, which can affect the support of institutions.
Bitcoin, ETH, and XRP Price Predictions: Key Levels to Watch
Bitcoin price needs to protect the 75,000 to ensure that the momentum does not go to low support areas.
A recovery of over 76,000 would manage to stabilize sentiment before traders can test harder resistance.
Ethereum price must regain $2,400, which has shifted from support to near-term resistance.
A drop below that might leave Ethereum vulnerable to further fall since the liquidity is still hesitant.
XRP price has to regain lost ground around $1.30 following a sharp decline on Monday around the $1.50 mark.
If the token is not secured, it remains at risk, particularly if there is continued uncertainty in Washington.
If the dovish camouflage becomes a reality, it could lead to any of the three assets having rebounds.
However, a hike paired with hawkish guidance may extend losses and increase volatility throughout the Crypto Market.
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Frequently Asked Questions (FAQs)
1. Why is the Crypto Market falling?
2. What happened to the CLARITY Act?
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