A tense macroeconomic environment and geopolitical headlines have created mixed momentum in the crypto market. As the U.S. Federal Reserve prepares for its next policy update, cryptocurrencies are showing divergent trends, with XRP outperforming and Bitcoin struggling for direction.
Bitcoin Struggles Amid Geopolitical Tensions
Bitcoin (BTC) saw notable intraday fluctuations, hitting $108,000 briefly before dipping to $106,500 on Monday. A mild recovery brought prices back above $107,000 during Tuesday’s Asian session.
This pullback followed $1.2 billion in futures liquidations on Friday, primarily impacting overleveraged altcoin traders. Despite the volatility, Bitcoin ETFs recorded $1.4 billion in net inflows last week — an indicator of rising institutional confidence.
Bitcoin’s reaction to geopolitical events remains muted, but analysts say it could pivot quickly as a safe-haven alternative if macro uncertainty intensifies.
XRP Leads Altcoin Recovery
Among major altcoins, XRP has emerged as the strongest performer, continuing to show resilience. It is currently priced at $2.17, reflecting a 0.77% daily gain, with a market cap of $128.23 billion and $1.74 billion in trading volume.
XRP has gained over 678% since its 2022 low and more than 1,000% in this cycle, surpassing both Bitcoin and Ethereum’s growth. Analysts attribute this momentum to increased adoption in institutional banking and cross-border payments.
In contrast, Ethereum (ETH) is trading at $2,609, up 1.5%, but still underperforming Bitcoin. Solana and Tron have also posted modest gains, though overall altcoin sentiment remains cautious.
Gold, Oil Surge on Geopolitical Developments
Traditional safe-haven assets like gold and oil surged Monday after unexpected calls from U.S. President Donald Trump for the evacuation of Tehran during the G7 summit. While this triggered a flight to safety in global markets, Bitcoin’s reaction lagged, highlighting its inconsistent behavior during geopolitical stress.
All Eyes on the Fed
The Federal Open Market Committee (FOMC) meeting remains the key macro driver this week. While no rate change is expected, the tone of Chair Jerome Powell’s remarks could influence market sentiment across equities and crypto.
A dovish tilt could signal room for future rate cuts, potentially fueling risk-on assets like crypto. However, uncertainty around inflation and global tensions may keep markets on edge.
XRP’s outperformance marks a significant shift in this bull cycle, while Bitcoin continues to consolidate in a volatile global environment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.