Monero Slumps as Fed Hawkishness Weighs on Crypto Market

The Monero (XMR) price continued its downward trend on Friday, marking its third consecutive session below $330. This decline comes as the broader crypto market feels the weight of Federal Reserve Chairman Kevin Warsh's hawkish tone during his post-meeting press conference on Wednesday.

Warsh emphasized the Fed's commitment to restoring inflation to the 2% target, prioritizing price stability over near-term monetary easing. Market participants have begun pricing in the possibility of another rate increase, with a 30% probability implied for an upcoming policy meeting.

Risk appetite weakened further as the Crypto Fear & Greed Index fell to 15 on Thursday from 22 a day earlier, solidifying the market's position in the 'Extreme Fear' zone. Technical indicators suggest some underlying buying interest, but Monero remains vulnerable to further downside as macroeconomic uncertainty and restrictive monetary policy continue to weigh on investor sentiment.