XRP Leads Crypto Majors Gains as Bitcoin Is Continuously Tested by Israel-Iran Tensions
Global markets remain uncertain as crypto assets trade sideways, awaiting the U.S. Federal Reserve’s decision this week. Following Friday’s $1.2 billion futures liquidation, which impacted overleveraged long positions and caused altcoins to decline, crypto markets displayed a defensive posture over the weekend. XRP led the major cryptocurrencies.
Bitcoin briefly surpassed $108,000 on Monday morning before retracting to $106,500 due to profit-taking, later recovering to above $107,000 on Tuesday. BTC ETFs experienced $1.4 billion in net inflows last week, highlighting their role in absorbing price shocks. Ether gained 1.5% to $2,609, lagging Bitcoin’s ETF-driven strength. Solana and Tron showed resilience, rising by 1.5% and 2.1% respectively.
The unexpected call by U.S. President Trump for the evacuation of Tehran from the G7 summit triggered a surge in gold and oil, traditional safe-haven assets. Bitcoin, however, showed a delayed reaction, a common pattern according to analysts. Eugene Cheung of OSL noted that Bitcoin often lags macro trends, potentially catching up if investors seek alternative value stores. The upcoming Fed meeting is crucial; while a rate hold is anticipated, the tone and language regarding inflation and tariffs will be closely scrutinized.
Jeff Mei of BTSE expects the Fed to hold rates steady, citing easing inflation and strong job numbers. Augustine Fan of SignalPlus suggests a subtle dovish shift might emerge, contingent on the committee using recent inflation data and jobless claims to justify a more dovish pivot. The Iran-Israel situation remains a near-term focus, overshadowing the Fed meeting’s immediate impact on market sentiment. The overall market mood remains cautious, pending further clarity from the Fed and developments in the geopolitical landscape.
