Higher oil prices can feed into broader inflation by raising transportation, manufacturing, and other energy-related costs.
In turn, stubborn inflation gives the Federal Reserve less room to ease monetary policy. Higher-for-longer interest rates, or further hikes, typically reduce investors’ appetite for riskier assets.
Cryptocurrencies sit firmly in that risk bucket. So, another oil-led inflation shock could pressure Bitcoin and the broader crypto market, dragging XRP lower with them.
2. The Federal Reserve Is Turning Increasingly Hawkish
The macro backdrop is getting worse for XRP.
Futures traders use 30-Day Fed Funds futures to price the probability of rate changes at upcoming Federal Reserve meetings, according to the CME FedWatch tool.
