Amid a backdrop of geopolitical tensions and economic uncertainty, XRP emerged as the frontrunner among major cryptocurrencies. This development comes as Bitcoin faces a volatile landscape, continuously tested by escalating Israel-Iran tensions. On Monday, Bitcoin surged past $108,000 during the U.S. morning session, only to dip to $106,500 due to profit-taking, before bouncing back above $107,000 in the Asian markets on Tuesday morning.
XRP Takes the Lead
In a crypto market that has been largely defensive since last week’s massive $1.2 billion futures liquidation, XRP has been leading the charge. This shakeout had previously sent altcoins plummeting over the weekend, yet XRP appears to be defying the trend. The token’s resilience is notable, especially as Bitcoin ETFs witnessed an impressive $1.4 billion in net inflows over the past week—an indication that spot products continue to act as stabilizers even when the broader market faces pullbacks. This aligns with recent observations in Altcoins With Massive Gains and New ATHs as Bitcoin Flirts With $110K, highlighting the dynamic shifts within the altcoin sector.
“XRP’s performance amid such volatility highlights its potential to stand out in uncertain times,” noted crypto analyst Linda Wang. “While Bitcoin remains the bellwether of the industry, XRP’s recent gains could attract investors looking for alternative opportunities.”
Bitcoin’s Delayed Reaction
While gold and oil—traditional safe-havens during geopolitical crises—saw prices surge following President Donald Trump’s unexpected call for the evacuation of Tehran at the G7 summit, Bitcoin’s response has been less immediate. According to Eugene Cheung, Chief Commercial Officer at OSL, this lag is not uncommon. “Bitcoin often shows a delayed reaction to macro trends,” Cheung explained. “The real test will come if risk sentiment shifts, potentially driving investors towards Bitcoin as an alternative store of value.” This sentiment is echoed in Strategy adds $1B in Bitcoin as Israel-Iran conflict pressures markets, where strategic investments are being made amidst geopolitical pressures.
The next few weeks could be pivotal for Bitcoin, especially with the U.S. Federal Reserve meeting scheduled this week. Market participants are largely anticipating a hold on rates, but the focus will be on the tone of Chair Powell’s comments, particularly concerning inflation and tariffs.
Eyes on the Fed
“We’re expecting the Fed to hold rates steady this week as they wait to see how tariffs will affect the economy,” remarked Jeff Mei, COO at BTSE, via Telegram. “Inflation is easing, and jobs are holding strong, so there’s no rush to cut or raise just yet.” Mei’s sentiments were echoed by Augustine Fan, Head of Insights at SignalPlus, who pointed out that while a dovish pivot might not be overtly announced, the groundwork could be laid for future policy shifts.
“The market will see whether the committee will use the recent string of downside inflation misses and weaker jobless claims to justify a more pronounced dovish pivot,” Fan added. “However, the near-term focus will remain on the Iran-Israel situation.”
Looking Ahead
With the Federal Reserve’s meeting results imminent and geopolitical tensions simmering, the cryptocurrency market is bracing for potential shifts. XRP’s current momentum raises questions about whether it can maintain its lead, while Bitcoin’s reaction to macroeconomic cues remains closely watched.
As traders navigate this complex landscape, the interplay between geopolitical events and economic policy will likely continue to shape market dynamics. The path forward is anything but certain, leaving investors to ponder whether XRP’s rally is a fleeting moment or heralds a new trend in the crypto space.
Source
This article is based on: XRP Leads Crypto Majors Gains as Bitcoin Is Continuously Tested by Israel-Iran Tensions
Further Reading
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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.
