In a week marked by both turbulence and opportunity, the cryptocurrency landscape is abuzz with activity. XRP and dogecoin have emerged as the frontrunners, posting gains of up to 5% as the market opened this Monday, August 4, 2025. Meanwhile, Bitcoin is hovering near $115,000, after a whirlwind of events including substantial ETF outflows and renewed geopolitical tensions affecting investor sentiment.
Tariff Tensions and Crypto’s Resilience
The past few days have been a rollercoaster for Bitcoin and Ethereum, both of which saw significant selloffs last Friday. These declines were triggered by nearly $1 billion in Bitcoin ETF outflows and $152 million for Ethereum, leading to a sharp plunge in their values. But here’s the twist: the market seems to be finding its footing quicker than expected. As explored in our recent coverage of Bitcoin dips below $115K as Trump tariff order fails to comfort investors, the geopolitical tensions have played a significant role in shaping market dynamics.
Jeff Mei, COO at BTSE, notes that the mood was soured by U.S. President Donald Trump’s fresh tariffs targeting Asia and Europe. “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,” Mei told CoinDesk. Yet, he observed an opportunistic buying pattern emerging, suggesting that the panic might be overblown.
Indeed, Bitcoin is trading around $114,500 in early Asia sessions, while Ethereum is maintaining a position above $3,550. Both remain nestled within their short-term support zones, an indication that the worst might be over for now.
Institutional Influence and Market Dynamics
In the shifting sands of crypto trading, institutional influence cannot be overstated. The rising presence of professional trading desks is creating a buffer against volatility. Augustine Fan, Head of Insights at SignalPlus, remarked, “The rising presence of professional desks has brought deeper secondary liquidity. This would’ve been a far messier unwind in the pre-ETF era.”
Fan anticipates a busy Q4, with the Federal Reserve’s policies and tariff-related inflation expected to impact the broader economy. “It’s an opportune time to dial down risk exposure in expectation of a busy September and year-end,” he advised.
Despite these stabilizing factors, the ETF market remains a missing piece in the puzzle. ETF buyers are still largely on the sidelines, keeping overall sentiment precarious. Bitcoin, for instance, is yet to breach the crucial $118,000 level needed to spark a more bullish outlook, while Ethereum hovers at a critical juncture just above $3,500. This follows a pattern of market volatility, which we detailed in our analysis of $600M Bullish Bets Liquidated as Bitcoin Drops to $115K, DOGE, SOL, XRP Fall 6%.
Broader Market Context
Outside the crypto sphere, macroeconomic indicators are painting a complex picture. U.S. equity futures have turned positive, gaining 0.4% after a disappointing jobs report ignited hopes for a Federal Reserve policy pivot. In Asia, the MSCI Pacific Index recovered early losses, and Hong Kong tech stocks snapped a seven-day losing streak. Treasury yields are edging up, with the 10-year note at 4.24%.
At the same time, commodity markets are reacting to global developments. Oil prices have softened following OPEC’s recent production hikes, while the U.S. dollar has seen a slight dip.
Future Implications
As we look ahead, the question remains: Can this tentative recovery hold? The interplay between geopolitical developments, institutional strategies, and retail enthusiasm will be critical in shaping the market’s trajectory. With September and year-end pressures looming, investors are likely to tread cautiously, balancing risk and reward in an ever-evolving landscape.
In the meantime, as analysts and traders digest the latest twists and turns, the crypto market stands as a testament to both its volatility and resilience—constantly adapting, always intriguing, and never short of surprises.
Source
This article is based on: XRP Leads Market Gains, Bitcoin Nears $115K as Trump Tariffs Sour Bullish Crypto Mood
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Zooms to $120K, ETH Nears $4K as Trump’s EU Tariff Deal Lifts Risk Sentiment
- Asia Morning Briefing: Trump’s EU Tariff Deal Holds Bitcoin Near $119K
- Could Trump’s Latest Warnings to Russia and Iran Shake Bitcoin?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
