The cryptocurrency market has underperformed over the last 24 hours despite the Federal Reserve cutting interest rates for the third time this year.

Bitcoin has dropped to the $90k region, while XRP retested the $1.9 support before bouncing back above $2.0.

With the Fed delivering a dovish statement on Wednesday, analysts predict that the apex bank will cut the interest rate just once next year, with the market now set to focus on liquidity and balance sheets to determine the Fed’s policy stance.

XRP, the native coin of the Ripple ecosystem, is down 3.5% in the last 24 hours and is now trading above $2.0.

The bearish performance comes as XRP spot Exchange Traded Funds (ETFs) recorded their 17th consecutive day of inflows.

The ETFs recorded $9 million in inflow on Tuesday, bringing the net assets to $945 million. The inflow is declining as institutions are now wary of the market conditions over the next few weeks.

Nic Puckrin, investment analyst and co-founder of The Coin Bureau, told Invezz in an email that due to the Fed’s dovish stance, the apex bank is expected to cut its interest rates just once in 2026.

Puckrin added that:

Indeed, today’s announcement is not enough to spark a Santa rally for Bitcoin, and I don’t see any other obvious catalysts from here on, barring any unexpected announcements from President Donald Trump. Even then, a dead cat bounce is a real possibility, as risk assets tend to care more about the Fed than just about anything else.

The analyst added that with further rate cuts now off the table for a while, attention will turn to liquidity and the Fed’s balance sheet policy in early 2026.

However, despite the Treasury bill purchase announced on Wednesday, Quantitative Easing (QE) isn’t coming until things start breaking, and that always means more volatility and potential pain for investors. 

The XRP/USD 4-hour chart is bearish and inefficient as the coin has lost 7% of its value over the last seven days.

At press time, XRP is trading at $2.01 after retesting the $1.9 support level a few hours ago.

The momentum indicators remain weak, suggesting that the bears are in control of the market. The RSI of 38 shows that XRP is heading into the oversold region if the bearish trend persists.

The MACD lines also entered the negative region on Tuesday, flashing a sell signal that remains valid. If the selloff continues, XRP could retest the November 21 low of $1.81. 

However, if the bulls regain control of the market, XRP could retest the $2.2 support level, with the next liquidity region around $2.35.

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