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The beginning of August has been tough so far. With over $500 billion lost (14.5%), the crypto market has seen the biggest crash in a year. 

The Japan stock market crash followed a faltering performance from equities, with the S&P 500 falling as much as 4.4% over the past three days. 

The market stumble has been led by weak employment data, slowed growth among major tech stocks and revived fears of a recession.

Rate cut bets have decreased following Fed Chair Jerome Powell’s press conference on July 31, wherein he said that any dovish decision would largely depend on whether or not inflation cools down.

XRP's price has erased all the gains it had secured over the past two weeks. At press time, XRP price is down 15.25% on the daily chart.

Ripple vs. SEC

The highly anticipated closed-door meeting between SEC officials, which drew significant attention from crypto traders speculating about a resolution with Ripple, was unexpectedly canceled.

Both Ripple and the SEC have remained silent, providing no explanation for the delay, leaving the crypto community in suspense.

“Extreme Fear” mode

At the moment, the Crypto Fear & Greed Index shows “ Extreme Fear.” It is usually not recommended to make large purchases during a market panic.

As XRP follows broader market sentiment, it is crucial to watch BTC's price movements. As Bitcoin lost its crucial support level of $55,000, a further decline remains a strong possibility.

Veteran trader Peter Brandt advises the XRP community to closely monitor the BTC pair for a potential “head and shoulders” pattern.

As Ali Martinez pointed out, historically, August and September are the worst months for the BTC price.

However, the XRP/BTC price correlation is at 0.66, which is considered moderate.