The Federal Reserve has cut interest rates by 25 basis points yesterday in a widely expected move, yet markets crashed after its Chair Jerome Powell suggested a potential easing of the interest rate-cutting cycle next year.

Powell’s comments led to a wide sell-off in risk assets across both the cryptocurrency market and traditional finance. The sell-off saw Bitcoin briefly drop below $100,000 before recovering, while Ethereum is still below $3,700. XRP was affected by the sell-off and lost 6% of its value today, to now stand at $2.37.

Despite the sell-off, XRP is still up more than 360% since the beginning of November, when the cryptocurrency was trading at around $0.513. 

Several catalysts were behind its surge, including Republican candidate Donald Trump winning the U.S. presidential elections and various spot XRP exchange-traded fund filings, along with Ripple’s launch of its RLUSD stablecoin.

The recent market sell-off was so significant that the CBOE Volatility Index (VIX), a widely used measure of the market’s volatility expectations known as its “fear gauge,” saw its second-largest spike in history. 

XRP has experienced significant volatility since its price exploded upward in early November, leading to various natural corrections as holders take profits and readjust their positions.