XRP Surges as Crypto Eyes Fed Outlook Amid Geopolitical Strain

XRP stood out as the top-performing major cryptocurrency this week, navigating a choppy global market backdrop shaped by rising geopolitical tensions and anticipation over the U.S. Federal Reserve’s next policy decision. While the broader crypto market struggled to gain momentum, XRP exhibited resilience, bolstered by renewed investor confidence and shifting market sentiment.

Following a weekend of volatility triggered by a massive $1.2 billion liquidation in crypto futures, which caused sharp declines in altcoin prices, risk appetite returned in some corners of the crypto market. Equities tried to regain footing early Monday, but the crypto market mostly held a defensive stance. Despite the conditions, XRP’s upward momentum added an optimistic note to a landscape clouded by investor caution.

Bitcoin saw modest fluctuations, climbing above $108,000 in early U.S. trading on Monday before retreating to $106,500 due to profit-taking. Later in Asia, renewed buying support pinned BTC above the $107,000 mark. Notably, Bitcoin ETFs absorbed $1.4 billion in net inflows over the past week, highlighting their growing role as stabilizing forces in times of price volatility.

Ether (ETH) also recorded gains, advancing 1.5% in the last 24 hours to reach $2,609. However, it lagged behind Bitcoin’s ETF-driven progress. Among altcoins, Solana (SOL) and TRON (TRX) posted increases of 1.5% and 2.1% respectively, although the general tone from market participants remained cautious. XRP’s price action appeared to break that mold, fueling intrigue about the token’s positioning amid macroeconomic headwinds.

Fueling the underlying market anxiety was a fresh burst of geopolitical turbulence. Traditional haven assets like gold and oil spiked following an unexpected G7 announcement. U.S. President Donald Trump called for the evacuation of Tehran, prompting a swift rally in defensive assets and elevating concerns about potential escalation between Iran and Israel.

Against this backdrop, Bitcoin’s subdued response stood in contrast to the surge in commodities. According to Eugene Cheung, Chief Commercial Officer at OSL, Bitcoin’s sensitivity to macro developments tends to lag.

“Bitcoin often trails asset classes like gold and oil when reacting to geopolitical threats or inflationary signals,” noted Cheung in commentary shared with CoinDesk. “That said, if investor sentiment turns and digital assets regain favor as alternative stores of value, Bitcoin – and by extension other cryptos like XRP – could experience renewed demand, especially if this week’s Fed decision aligns with market expectations.”

Investors are broadly predicting that the Federal Reserve will maintain its current interest rates. However, the tone and nuance of Chair Jerome Powell’s remarks are expected to carry heavy influence, particularly in light of recent inflation data and lingering trade concerns.

“We anticipate the Fed will remain on hold,” said Jeff Mei, COO at BTSE. “With inflation showing signs of softening and employment data staying solid, there’s little urgency for either a hike or cut. Most likely, they’ll wait for more clarity on the economic impact of tariffs before adjusting their policy stance later this year.”

Some analysts, however, suggest that subtle signs of a more dovish lean from the Fed could emerge. Augustine Fan, Head of Insights at SignalPlus, believes the committee may begin laying the groundwork for upcoming easing measures – even if not explicitly stated.

“We could see a mild dovish tilt on the margin,” Fan said. “The recent downward surprises in inflation and muted jobless claims give room for a softer tone. However, any immediate shifts are unlikely, with market attention remaining fixated on the escalating Iran-Israel conflict.”

Related: Expert Advice: Sell XRP If You’re Confused

As the crypto market weaves through a complex web of economic and geopolitical factors, XRP’s buoyancy underscores its potential as an alternative risk asset. With macro variables still playing out and sentiment on edge, all eyes turn to the Federal Reserve’s position as a potential catalyst for broader crypto momentum.