The Fed Decides at 2 pm ET Wednesday. What a Hike Does to Bitcoin, XRP and Ethereum the Day After Congress Failed.

A Fed rate hike at 2 PM ET Wednesday will hit a crypto market already rattled by the Senate killing landmark digital asset legislation, but traders watching Bitcoin, XRP, and Ethereum may have their eyes on the wrong clock.

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The Federal Reserve will announce its rate decision at 2 PM ET on September 16, 2026. Currently, the CME FedWatch tool puts the probability of a 25 basis point increase at 92%, raising the target range from 3.50%-3.75% to 3.75%-4.00%. This would mark the first rate increase since 2023 and comes just a day after the Senate blocked the CLARITY Act.

As of now, Bitcoin (CRYPTO:BTC) is trading near $75,903, down 1.44% over the past 24 hours. XRP (CRYPTO:XRP) is at approximately $1.29, down 7.98%, while Ethereum (CRYPTO:ETH) is valued at about $2,404, down 3.18%. Given the expected rate hike, what impact will the Fed’s decision have on cryptocurrency prices once it’s announced?

Traders Expect a Hike, but Standard Chartered Urges Caution

The Fed has maintained its target range at 3.50% to 3.75% for five consecutive meetings. Notably, three members dissented and advocated for a rate hike during the July meeting. August inflation rose 3.4% year over year, with core inflation at 2.4%. Kevin Warsh has previously indicated that PCE inflation is running close to 3%, significantly above pre-pandemic levels.