XRP Leads Crypto Majors Gains as Bitcoin Continually Tested by Israel-Iran Tensions
Global markets exhibit uncertainty, with crypto assets trading sideways pending the U.S. Federal Reserve’s meeting. Following Friday’s $1.2 billion futures liquidation, which impacted overleveraged longs and caused altcoin declines, crypto markets remained defensive. Bitcoin, initially exceeding $108,000, retreated to $106,500 due to profit-taking before recovering above $107,000. BTC ETFs experienced $1.4 billion in net inflows last week, highlighting their role in stabilizing prices. Ether (ETH) increased by 1.5% to $2,609, while Solana (SOL) and Tron (TRX) rose by 1.5% and 2.1%, respectively.
Geopolitical tensions escalated after President Trump’s call for Tehran’s evacuation, triggering a surge in gold and oil—traditional safe havens. Bitcoin, however, lagged this trend, a pattern analysts attribute to its delayed reaction to macro trends. Eugene Cheung of OSL notes that while gold and oil respond to geopolitical and inflationary pressures, Bitcoin’s response may be delayed. However, a shift in risk sentiment could boost Bitcoin if the Fed meeting aligns with investor expectations.
The market largely anticipates the Fed holding rates steady, focusing instead on Chair Powell’s statements regarding inflation and tariffs. Jeff Mei of BTSE expects a hold, citing easing inflation and strong job numbers. Augustine Fan of SignalPlus suggests a subtle dovish shift might be implied rather than explicitly announced, depending on how the committee interprets recent inflation and jobless claims data. The Iran-Israel situation remains a near-term focal point. The overall tone reflects cautious optimism, with the Fed’s decision and geopolitical developments shaping market direction in the coming weeks. The interplay between macroeconomic factors, geopolitical events, and investor sentiment will determine the trajectory of both traditional and crypto markets.
