The crypto market opened the week under pressure as concerns over President Trump’s new tariffs and the Federal Reserve’s reluctance to cut interest rates dampened investor sentiment.
Bitcoin (BTC) and ether (ETH) steadied on Monday following volatile sell-offs over the weekend, triggered by significant outflows from Bitcoin spot ETFs—the largest in months.
Bitcoin ETFs saw nearly $1 billion in withdrawals across Thursday and Friday, pushing BTC down to around $114,000 before a mild recovery. Ether followed suit, with $152 million in outflows on Friday, ending a month-long streak of daily inflows and weighing on its price momentum.
The sell-off coincided with President Trump’s announcement of fresh tariffs targeting Asia and Europe, shaking global markets and hitting risk-sensitive assets hard.
Jeff Mei, COO of BTSE, told CoinDesk, “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. However, opportunistic buyers are already stepping in ahead of U.S. market open, suggesting the fear may be overblown.”
Early Asian trading saw Bitcoin hold near $114,500, while ether hovered just above $3,550, maintaining key short-term support levels.
Retail favorites XRP and Dogecoin led Monday’s gains, rising as much as 5%. Cardano (ADA), Binance Coin (BNB), and Solana (SOL) also advanced more than 3%.
Institutional involvement appears to be cushioning volatility. Augustine Fan, Head of Insights at SignalPlus, commented, “The rise of professional trading desks has improved liquidity and mitigated what would have been a much messier sell-off prior to the ETF era.”
Looking ahead, Fan warned that Q4 could prove pivotal as the Fed reengages and tariff-induced inflation impacts the broader economy. “This is an opportune time to reduce risk exposure ahead of a potentially turbulent September and year-end,” he added.
ETF inflows remain subdued, keeping market sentiment cautious. Bitcoin still trades below the critical $118,000 breakout level, while ether must surpass $3,500 to avoid triggering further selling pressure.
On the macro front, U.S. equity futures gained 0.4% following Friday’s weak jobs report, which increased expectations of a Fed policy shift. The MSCI Asia Pacific Index erased early losses, Hong Kong tech stocks snapped a seven-day losing streak, and 10-year Treasury yields ticked up to 4.24%.
Oil prices slipped after OPEC+ completed a series of production hikes, and the U.S. dollar weakened slightly.
