Why Are Bitcoin, Ethereum, XRP Prices Down Today? Here's the reason

The Bitcoin, Ethereum, and XRP prices today are under pressure, with all three of the largest cryptocurrencies trading lower.

Bitcoin (BTC) is down more than 2%. Ethereum (ETH) has fallen by nearly 3.70%. XRP has borne the brunt of the selling, down over 8%.

As of this writing, Bitcoin is trading near $76,000, Ethereum is above $2,400, and XRP is holding around $1.29.

The decline followed the Clarity Act's failure to advance in the Senate on Tuesday. Traders are now turning their attention to the Federal Reserve's rate decision, due later today.

Why Did Crypto Prices Crash Today?

The U.S. Senate failed to advance the Clarity Act (H.R. 3633) after a cloture vote came up short of the 60 votes required, drawing only 49 in favor.

The bill was intended to establish clear regulatory rules for digital assets in the U.S. Its failure weighed on investor confidence.

Selling pressure hit Bitcoin, Ethereum, and XRP shortly after the vote result became known.

What Is the Fed Rate Decision Today?

Markets are now focused on the Federal Reserve, with the FOMC announcement scheduled for 2:00 PM ET and a press conference to follow at 2:30 PM ET.

Inflation remains well above the Fed's 2% long-run target, a key reason this meeting carries added weight.

The CME FedWatch tool puts the odds of a 25-basis-point hike at 92.5%, versus just 7.5% for rates holding steady.

The Fed's preferred inflation gauge, the PCE index, rose 3.7% annually in July, with core PCE up 3.3%. The consumer price index climbed 3.4% annually in August, with core CPI at 2.4%.

Traders are weighing three scenarios:

• A hike would likely push crypto prices further lower.

• A hold could offer some relief and a modest rally.

• A cut would likely spark a stronger rally across the market.

How Much Was Liquidated in Crypto Today?

According to CoinGlass, total liquidations reached $649.90 million over the past 24 hours, with $545.82 million coming from long positions and $104.08 million from shorts.

Bitcoin accounted for the largest share of liquidations at $223.63 million, followed by Ethereum at $211.99 million. Solana and Zcash also recorded notable liquidations.

An estimated 11,522 traders were liquidated. The largest single order was a $22.52 million BTC-USDT position on Binance.

The Crypto Fear & Greed Index now stands at 51, a Neutral reading, down from 69 (Greed) yesterday and 66 (Greed) a week ago. Last month's reading was 31 (Fear), underscoring how quickly sentiment has cooled.

What Is the XRP Price Prediction Today?

XRP is testing its 20-week EMA, a level chart watchers consider significant. A close below it could open the door toward $1.00.

After losing the $1.34 support, XRP slid quickly to $1.26, weakening the earlier bullish setup that had targeted the $1.70 to $1.78 zone.

Traders are watching several levels:

• $1.24 to $1.26 - first support bulls need to hold

• $1.14 to $1.10 - next target if $1.24 breaks

• $1.00 - psychological level below $1.10

• $1.34 - level XRP must reclaim to treat this drop as a fakeout

The 1-hour RSI has dropped near 21, a deeply oversold reading. A short-term bounce would not be surprising, even if the broader trend remains weak.

Will Ethereum Price Reach $3,400?

Ethereum is consolidating after a sharp rally from around $1,900 toward $2,550. ETH is currently trading near $2,399.

The $2,550 to $2,600 range stands as the key resistance zone. A break and hold above it could open a path toward $2,752, with a larger measured-move target near $3,350 to $3,400.

On the downside, $2,150 marks an important support level; a decisive break below it would weaken the bullish case.

The RSI near 50 remains neutral, so confirmation from a breakout with sustained volume would be needed before treating the upside projection as active.

Is Bitcoin in a Buying Zone Right Now?

Analyst Ali Martinez has pointed to Bitcoin's short-term holder cost basis, the average price paid by investors who have held BTC for less than 155 days, as a level worth watching.

He noted that past dips to or near this line have historically marked attractive accumulation zones before bull markets resumed. That level currently sits around $71,200.

Trader Michaël van de Poppe said he is watching the $74,000 zone as his preferred support area, adding that fear has returned to the market alongside a wave of short liquidity.

What's Next for Crypto Prices Today?

The Bitcoin, Ethereum, and XRP price today story is shaped by two events: a failed Clarity Act vote and an upcoming Fed decision.

A steady rate hold could ease some of today's losses across the board; a hike would likely add further pressure on all three coins.

Bitcoin remains in focus near the $71,200 to $74,000 zone that analysts are watching as a potential accumulation area. Ethereum needs to clear $2,550 to $2,600 to keep its bullish setup intact, with $2,150 as the level to defend.

XRP looks the most fragile of the three. A failure to hold $1.24 to $1.26 would leave a slide toward $1.10, and eventually $1.00, on the table.

No outcome is guaranteed, and prices can move quickly once the Fed's announcement lands.

Disclaimer

This article is for informational purposes only and should not be taken as financial or investment advice. Cryptocurrency markets are highly volatile and risky. Always do your own research and consult a licensed financial advisor before making any investment decisions.