XRP Tops Major Crypto Movers as Bitcoin Struggles Amid Geopolitical Strains in the Middle East

Crypto Markets Hold Steady Ahead of Fed Decision as XRP Outperforms Majors

Crypto assets traded mostly sideways on Tuesday as investors await this week’s Federal Reserve policy meeting, with markets anticipating no change to interest rates but closely watching for forward guidance. The backdrop remains uncertain following last Friday’s sharp deleveraging event, which wiped out over $1.2 billion in futures positions, triggering a weekend sell-off across altcoins.

Among large-cap tokens, XRP emerged as the relative outperformer, while Bitcoin (BTC) briefly crossed $108,000 in Monday’s U.S. session before retreating to $106,500. A recovery during Asian trading hours brought prices back above $107,000, suggesting that buyers remain active on dips.

Meanwhile, spot Bitcoin ETFs continued to demonstrate their stabilizing role, attracting $1.4 billion in net inflows over the past week, despite broader market turbulence.

Ethereum (ETH) gained 1.5% to reach $2,609, while Solana (SOL) and Tron (TRX) saw modest strength, advancing 1.5% and 2.1%, respectively. Still, overall momentum remains muted, with traders cautious ahead of macro risk events.

Geopolitical Risks Push Gold, Oil Higher; Bitcoin Lags

Risk-off sentiment briefly intensified after former President Trump, speaking from the G7 summit, called for a full evacuation of Tehran, driving a rally in gold and oil as investors moved into traditional safe havens.

Bitcoin, however, lagged behind the move—consistent with its historical pattern of delayed response to macro shocks.

“BTC doesn’t always react instantly to geopolitical catalysts,” said Eugene Cheung, CCO of OSL. “Gold and oil typically lead, but if the situation escalates or if rate expectations shift, Bitcoin could benefit as investors seek alternative hedges.”

Focus Shifts to Powell’s Guidance, Not Just Rates

While markets are pricing in a rate hold from the Fed this week, the tone of Chair Jerome Powell’s comments is expected to carry significant weight. Investors will look for any language suggesting a softening stance, particularly as recent inflation data has undershot expectations and labor markets remain stable.

“The Fed will likely pause again, but the language will be key,” said Jeff Mei, COO of BTSE. “There’s no urgency to move right now with inflation moderating. Most likely, they’ll wait for more data in Q3 before signaling their next step.”

Some market participants are watching for early signs of a dovish tilt.

“We think the Fed may lean slightly dovish on the margin,” said Augustine Fan, Head of Insights at SignalPlus. “Recent downside surprises in CPI and softer jobless claims give them some cover to begin shifting their tone. Still, near-term attention will remain on the Middle East situation, which is keeping broader risk appetite in check.”