Amid investor uncertainty before the Fed meeting, the crypto market shows mixed dynamics, with Bitcoin and XRP standing out amid recent turmoil.
Bitcoin Wobbles Amid Geopolitical Tensions
Bitcoin briefly topped $108,000 before slipping to $106,500 due to profit-taking. It later rose above $107,000 during Tuesday's Asian trading hours. These fluctuations occurred after $1.2 billion in futures liquidations forced overleveraged traders out, negatively impacting altcoins over the weekend. Despite the volatility, Bitcoin ETFs attracted $1.4 billion in net inflows last week, reaffirming their growing role as stabilizers during turbulent times. Analysts suggest Bitcoin's slow response to macroeconomic stress may change if investors seek alternative safe-haven assets.
XRP Takes the Lead as Altcoins Recover
While most major altcoins are still recovering from the weekend drawdown, XRP stood out with a strong rebound. XRP, the fourth-largest cryptocurrency, is trading at $2.17 with a 0.77% daily gain. It continues to hold a strong position, supported by growing interest in institutional banking integration. Ethereum ticked up 1.5% to $2,609 but continues to trail behind Bitcoin's ETF-fueled performance. Solana and Tron also posted modest gains, but sentiment across altcoins remains cautious. Meanwhile, gold and oil surged early Monday following an unexpected call from President Donald Trump for the evacuation of Tehran during the G7 summit.
Fed Holds the Spotlight
All eyes are now on the Fed. Market watchers expect interest rates to remain unchanged, but the tone of Chair Jerome Powell’s remarks could set the course for crypto and equities alike. With inflation easing and jobs data holding firm, officials may opt for patience, though some, like SignalPlus’ Augustine Fan, believe a dovish tilt could be signaled subtly.
In the coming days, the market will depend on the Fed's statements and the escalating tensions in the Middle East, which could significantly impact both cryptocurrency and equity markets.
