As global markets remain on edge due to heightened geopolitical tensions and investor caution ahead of the U.S. Federal Reserve meeting, major cryptocurrencies are showing mixed movements. XRP has emerged as the top-performing asset among large-cap tokens, while Bitcoin struggles to maintain momentum amidst profit-taking and cautious sentiment.
Crypto Markets Trade Sideways Ahead of Fed Decision
The broader crypto market continues to tread water, with traders awaiting clarity from the U.S. Federal Reserve this week. Analysts anticipate no immediate policy change but expect insights into future rate movements, inflation control, and economic resilience.
Despite some stability in equities on Monday, the crypto market remained defensive, especially after a $1.2 billion futures liquidation on Friday. That sharp correction flushed out overleveraged long positions and triggered a weekend sell-off in several altcoins.
XRP Outperforms as Bitcoin Wavers
XRP stood out among major tokens, climbing to $2.22 and leading the crypto pack. Meanwhile, Bitcoin saw a volatile start to the week. It rose above $108,000 during the U.S. morning session on Monday but dropped to $106,500 as traders booked profits. By Tuesday morning in Asia, Bitcoin recovered slightly to trade above $107,000.
BTC exchange-traded funds (ETFs) attracted $1.4 billion in net inflows over the past week, highlighting their growing role in market stability. These spot ETFs are increasingly acting as buffers during periods of volatility.
Ether (ETH) also showed modest gains, up 1.5% to $2,609, although it continued to trail Bitcoin’s ETF-driven momentum. Other notable performers include Solana (SOL), which rose 1.5% to $151.01, and Tron (TRX), which gained 2.1% to reach $0.27788. However, traders remain largely cautious as global uncertainty persists.
Gold and Oil Surge on Trump’s Tehran Statement
In traditional safe-haven markets, both gold and oil prices saw strong early-week gains following a dramatic geopolitical development. Former U.S. President Donald Trump, speaking from the G7 summit, unexpectedly called for the evacuation of Tehran. The announcement spurred a mini-rush into defensive assets, driving gold and oil sharply higher.
Bitcoin, however, did not follow suit. Historically, BTC has often shown delayed reactions to geopolitical shocks compared to conventional hedges like gold.
“Bitcoin often shows a delayed reaction to macro trends, so while gold and oil are surging on geopolitical and inflationary pressures, BTC may take time to catch up,” said Eugene Cheung, Chief Commercial Officer at OSL, in a note. “However, if risk sentiment shifts and investors look for alternative stores of value, Bitcoin could see renewed momentum in the coming weeks if this week’s Fed meeting comes in as expected.”
All Eyes on the Fed’s Tone, Not the Decision
Although markets widely expect the Federal Reserve to hold interest rates steady, the focus is now firmly on Chair Jerome Powell’s remarks. Investors are keen to detect any dovish signals that could shape expectations for rate cuts later this year.
“We’re expecting the Fed to hold rates steady this week as they wait to see how tariffs will affect the economy,” said Jeff Mei, COO at BTSE. “Inflation is easing and jobs are holding strong, so there’s no rush to cut or raise just yet. They’ll likely wait for more data before making any big moves.”
Some analysts believe the Fed could begin laying the groundwork for a softer policy stance, even if not stated outright.
“The Fed will likely see some dovish risk on the margin,” said Augustine Fan, Head of Insights at SignalPlus. “The market will see whether the committee will use the recent string in downside inflation misses and weaker jobless claims to justify a more pronounced dovish pivot. We don’t expect a whole lot out of the meeting, and the near-term focus will remain on the Iran-Israel situation.”
Looking Ahead
With no immediate rate changes expected, market participants are bracing for continued volatility. The intersection of geopolitical conflict, inflation pressures, and shifting monetary policies is likely to influence both traditional and digital asset markets in the weeks ahead.
For now, XRP’s surprising strength offers a rare bright spot in an otherwise cautious market, while Bitcoin and other cryptos await clearer signals from both the Fed and global events.
