Crypto markets kicked off the week with cautious optimism, as Bitcoin hovered near $114,500 and XRP surged 5%, leading a rebound in select altcoins. Despite lingering volatility, traders are beginning to buy the dip, following sharp selloffs triggered by geopolitical tensions and monetary policy uncertainty.
Trump’s Tariffs and Fed Caution Trigger Market Dip
Last week’s $1 billion in Bitcoin ETF outflows—the worst in months—sent prices tumbling to a weekend low near $114,000. Ether (ETH) saw $152 million in outflows, ending a multi-week inflow streak and putting pressure on its uptrend.
The volatility was fueled by new tariffs announced by U.S. President Donald Trump, targeting trade partners in Asia and Europe, and compounded by signals from the Federal Reserve, indicating no immediate interest rate cuts.
“The dip was driven by concerns over Trump’s tariff stance and the Fed’s signal that it’s not keen to cut rates soon,” said Jeff Mei, COO of BTSE.
Opportunistic Buying and Institutional Support Emerge
Despite macro-driven sell pressure, opportunistic buyers stepped in early Monday, helping Bitcoin recover modestly and Ether hold support above $3,550. Analysts note that institutional desks are cushioning volatility, providing depth not seen in pre-ETF markets.
“This would’ve been a far messier unwind in the pre-ETF era,” said Augustine Fan of SignalPlus.
ETF inflows may be missing for now, but professional market makers are dampening volatility, signaling a maturing crypto market structure.
XRP, DOGE, and Altcoins Outperform
While Bitcoin and Ether stabilize, XRP and Dogecoin rose over 5%, followed closely by Cardano (ADA), BNB, and Solana (SOL), which all gained over 3%.
These retail-favorite tokens are benefiting from short-term bullish momentum as traders reposition ahead of a potentially volatile Q4.
Macro Landscape Offers a Temporary Floor
Beyond crypto, U.S. equity futures rose 0.4%, supported by a weaker jobs report that may prompt a softer Fed stance in the coming months. The MSCI Asia Pacific Index and Hong Kong tech stocks bounced back, while Treasury yields inched up to 4.24%.
Despite macro pressures, crypto markets remain resilient, and $118,000 remains a key breakout level for Bitcoin. Until ETF demand returns, traders may expect range-bound conditions with upside capped by global policy uncertainty.
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.