XRP Outperforms as Crypto Rebounds Despite Trump Tariffs and ETF Outflows

The cryptocurrency market kicked off the week on a cautiously optimistic note, with XRP leading the gains and bitcoin hovering just below $115,000, despite broader macroeconomic pressures.

The weekend was marked by heightened volatility stemming from massive spot ETF outflows, compounded by fresh tariff announcements from U.S. President Donald Trump, which rattled risk assets across global markets.

Bitcoin dropped as low as $114,000 after nearly $1 billion in ETF outflows on Thursday and Friday, representing the most significant capital exodus in months. Ether (ETH), which had enjoyed nearly a month of continuous inflows, also faced pressure with $152 million in outflows on Friday, weakening its recent rally momentum.

The uncertainty was fueled in part by geopolitical developments, as Trump announced new tariffs targeting Asia and Europe, dampening investor appetite across equities and crypto alike. “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. But opportunistic buyers are already stepping in before U.S. markets open, indicating the fear may be overdone,” explained Jeff Mei, COO at BTSE, in a note shared with CoinDesk on Monday.

Despite the gloomy backdrop, some recovery signs were visible. Bitcoin stabilized near $114,500 in early Asian trading, while ether hovered above $3,550, both clinging to short-term support levels. Meanwhile, altcoins rallied. XRP and dogecoin (DOGE) surged up to 5%, while Cardano (ADA), BNB, and Solana (SOL) each posted gains exceeding 3%, with XRP topping the leaderboard.

Analysts suggest that institutional involvement is helping to soften the market's downside.

“The rising presence of professional desks has brought deeper secondary liquidity. This would’ve been a far messier unwind in the pre-ETF era,” noted Augustine Fan, Head of Insights at SignalPlus. He further commented, “Q4 will be an important quarter with the Fed fully back in play and the tariff-inflation spillover to start showing in the real economy, so we believe it's an opportune time to dial down risk exposure in expectation of a busy September and year-end.”

Nevertheless, broader sentiment remains tentative, with ETF buyers not yet returning in force. Bitcoin remains below its critical $118,000 breakout zone, while ether must stay above $3,500 to avoid triggering more systematic selling.

Outside of the crypto sphere, the macroeconomic landscape offered mixed signals. U.S. equity futures showed a modest 0.4% uptick after a weaker-than-expected jobs report boosted hopes of a Federal Reserve policy shift. The MSCI Asia Pacific Index rebounded, erasing early losses, and Hong Kong tech stocks ended a seven-session losing streak.

Meanwhile, U.S. Treasury yields inched higher, with the 10-year yield touching 4.24%. Oil prices dipped following OPEC+ production updates, and the U.S. dollar edged lower.

Despite the external pressures, the crypto market's resilience underscores investor readiness to buy the dip — but caution still dominates as traders await clarity on U.S. economic policy, geopolitical tensions, and ETF market participation. 

By fLEXI tEAM