XRP Drives Market Advances as Bitcoin Edges Closer to $115K Despite Tariff-Related Crypto Headwinds

Concerns over President Trump’s tariff policies and the Federal Reserve’s hesitation to cut interest rates soon weighed on the crypto market early this week.

Bitcoin (BTC) and ether (ETH) stabilized Monday after sharp sell-offs over the weekend, triggered by the largest spot Bitcoin ETF outflows seen in months.

Nearly $1 billion flowed out of Bitcoin ETFs on Thursday and Friday, driving BTC down to around $114,000 before a modest rebound. Ether also experienced $152 million in outflows on Friday, ending a nearly month-long streak of daily inflows and putting pressure on its rally.

The sell-off coincided with new tariffs imposed by President Trump on Asia and Europe, which dampened global market sentiment and hit riskier assets.

Jeff Mei, COO of BTSE, told CoinDesk, “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. But opportunistic buyers are already stepping in ahead of U.S. market open, indicating that fears may be exaggerated.”

In early Asian trading, Bitcoin held near $114,500, while ether hovered above $3,550 — both maintaining short-term support.

Retail favorites XRP and Dogecoin (DOGE) led Monday’s gains, rising as much as 5%. Cardano (ADA), Binance Coin (BNB), and Solana (SOL) also climbed over 3%.

Institutional involvement seems to be easing volatility. Augustine Fan, Head of Insights at SignalPlus, said, “The growing presence of professional desks has brought deeper liquidity. Such a sell-off would have been far more chaotic before the ETF era.”

Looking ahead, Fan cautioned, “Q4 will be a key quarter as the Fed reasserts its influence and tariff-related inflation impacts the economy. It’s a good time to reduce risk ahead of a potentially volatile September and year-end.”

Still, ETF buyers remain cautious, keeping sentiment tentative. Bitcoin remains below the crucial $118,000 breakout level, while ether must surpass $3,500 to avoid further selling pressure.

On the broader economic front, U.S. equity futures rose 0.4% after Friday’s disappointing jobs report boosted hopes of a Fed pivot. The MSCI Asia Pacific Index erased earlier losses, Hong Kong tech stocks ended a seven-day slide, and 10-year Treasury yields edged up to 4.24%.

Oil prices eased following OPEC+’s recent production hikes, and the dollar softened slightly.