Why Is XRP Dropping Today?

XRP's value plummeted 7.1% over the past week, outperforming Bitcoin, Ethereum, and BNB in terms of decline. This sharp drop can be attributed to the Federal Reserve's anticipated rate hike, with odds reaching 83% for a September 16 increase. Rising inflation, driven by oil prices reaching $107 a barrel, contributed to the market's shift towards a higher rate.

The funding rate for XRP turned negative at -0.0094%, indicating that institutions are holding off on investing until the Fed makes a decision. XRP's 30-day performance, however, shows a 32.2% gain, surpassing Bitcoin's 20.9% gain and Ethereum's 30.2% gain. The recent PPI showed wholesale inflation at 5.4% year-on-year, further fueling the Fed's rate hike expectations.