«The decline was caused by concerns about Trump's tariff policy and the Federal Reserve's signal that it is in no rush to lower rates anytime soon,» noted one trader.
What you need to know:
📌Bitcoin and Ether stabilized after significant outflows from ETFs related to U.S. spot assets, which caused a sharp decline in their prices.
📌New U.S. tariffs and the Federal Reserve's stance on interest rates contributed to market volatility, but opportunities for buying are emerging.
📌Institutional liquidity helps to soften volatility, although ETF buyers remain cautious, keeping overall sentiment in a state of uncertainty.
Cryptocurrencies started the week steadily: Bitcoin (BTC) and Ether (ETH) stabilized after volatile sell-offs on Friday and Saturday, triggered by the largest outflows into spot ETFs in several months.
Bitcoin ETFs experienced nearly $1 billion in outflows on Thursday and Friday, causing the asset to drop to approximately $114,000 before a slight recovery. Ether faced outflows of $152 million on Friday, ending nearly a month-long streak of daily inflows and putting pressure on its rally.
This occurred against the backdrop of U.S. President Donald Trump imposing new tariffs across Asia and Europe, which worsened sentiment in the global market, and risky assets suffered losses.
«The decline was caused by concerns about Trump's tariff strategy and the Federal Reserve's signal of unwillingness to lower rates anytime soon. However, opportunistic buyers are already actively entering the market ahead of the opening of U.S. exchanges, indicating a possible over-exaggeration of fears,» noted Jeff May, COO of BTSE, in a Monday note to CoinDesk. This opportunistic pattern is evident in some charts. Bitcoin is holding near the $114,500 level in early Asian trading, while Ether was above $3,550 — both still within short-term support zones.
On Monday, XRP, a favorite among retail investors, was among the leaders in market growth.
XRP$3.0449
and dogecoin
DOGE$0.2068
, which rose by 5%, as well as Cardano's ADA (ADA), BNB (BNB), and Solana's SOL (SOL), which increased by more than 3%.
The depth of the institutional segment, by some estimates, also helps to smooth volatility.
«The growing presence of professional desks has contributed to deeper secondary liquidity,» said Augustin Fan, head of analytics at SignalPlus.
«This deployment could have been significantly more chaotic in the pre-ETF era. The fourth quarter will be an important period with the full return of the Fed to active play and the beginning of the impact of tariffs on inflation in the real economy, so we believe that now is an appropriate time to reduce risk levels in anticipation of a tense September and year-end,» Fan added.
However, ETF buyers are currently absent, which keeps the overall sentiment in a state of uncertainty. Bitcoin remains below the critical breakout area at $118,000, while Ether needs to rise above $3,500 to avoid triggering further systemic sell-offs. Outside the cryptocurrency space, macroeconomic conditions are creating a soft bottom. U.S. stock futures are up 0.4% after a weak labor market report on Friday, which raised expectations of a shift in Fed policy. The MSCI Asia Pacific index offset morning losses, Hong Kong tech stocks broke a 7-day decline, and Treasury yields rose, with 10-year papers trading at 4.24%.
Oil fell after OPEC+ concluded a wave of production increases, while the dollar weakened slightly.
