Dissent in the Fed-eral Reserve: Crypto Crouches as Oil Drops the Mic 🎤

Bitcoin and XRP remained under selling pressure on Tuesday even as oil prices extended their decline below $80, with traders pinning the move on mounting worries over dissent inside the Federal Reserve ahead of this week's FOMC meeting. Stocks and digital assets alike slipped as expectations grew that split votes could pave the way for a 25 basis-point rate hike in September.

Markets are bracing for a 10-2 split when FOMC members begin their two-day meeting, with two officials already expected to back a quarter-point increase. Concerns have intensified after the June FOMC minutes revealed a divided committee, and analysts note that more than three dissenting votes would strengthen the case for a September hike even if policy is left unchanged this week. The CME FedWatch Tool is pricing in 56% odds of a 25 bps rate hike in September, reflecting the shift in sentiment.

The pressure on crypto comes against a backdrop of falling crude, driven by hopes of de-escalation in the US-Iran conflict. Despite that tailwind for risk assets, $BTC and XRP continued to trade lower, underscoring that macro signals from the Fed are currently outweighing commodity-market relief for digital-asset traders.

Investors are now looking to Fed officials' commentary and votes for fresh cues on the trajectory of interest rates, with the two-day meeting getting underway on Tuesday. Any surprise in the dissent count or guidance from Chair Jerome Powell is likely to set the tone for crypto markets into the end of the week.