Despite recent pullbacks and renewed fears over global tariffs, major cryptocurrencies are showing signs of bottoming out, reinforcing a sense of long-term optimism among investors.
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Bitcoin remains steady around $105,000, while Ether, XRP, Solana (SOL), Cardano (ADA), and Dogecoin are also holding near key support levels.
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Market volatility driven by macroeconomic uncertainties and geopolitical developments continues to affect short-term sentiment.
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Institutional interest and diversification into altcoins and DeFi assets underpin a bullish long-term outlook.
Bitcoin hovered near $105,000 during Asian trading hours on Monday, reflecting little change over the past 24 hours despite a 5% weekly dip. Other leading cryptocurrencies, including Ether, XRP, Solana, Cardano, and Dogecoin, followed similar patterns, suggesting a potential local bottom and setting the stage for short-term rebounds.
“Bitcoin is stuck around $105K as macro uncertainty holds back bullish momentum,” said Nick Ruck, Director at LVRG Research. “Inflation concerns, new tariffs, and broader economic fears in the U.S. have led to investor caution, though we’re still seeing long-term conviction in the space.”
Ruck noted that geopolitical tensions, especially between the U.S. and China, along with uncertainty around Federal Reserve policy, are key factors currently weighing on risk appetite.
China’s Ministry of Commerce on Monday condemned new U.S. export restrictions on AI chips and related software, escalating concerns of a trade conflict. This has added a layer of uncertainty to global markets and left crypto traders on edge.
“Even small escalations in the trade war can trigger sharp moves in crypto markets,” said Jeff Mei, COO at BTSE. He emphasized that upcoming U.S. economic data — including trade balance figures, jobless claims, and comments from Fed officials — will be crucial in shaping market sentiment.
Still, Mei remains optimistic: “While macro headlines dominate the market, institutional accumulation continues in the background. That’s a bullish long-term signal.”
Meanwhile, investors are increasingly diversifying beyond Bitcoin. Tokens like XRP and SOL have drawn attention for their resilience and potential upside, as Bitcoin’s price begins to track more closely with traditional risk assets.
Kathy Qu, Research Manager at HashKey Cloud, said in a statement that “uncertainty in trade policy is pushing capital toward high-growth sectors — not just tech stocks, but also crypto.” She highlighted Bitcoin and XRP as preferred assets due to growing ETF optimism and regulatory clarity.
Qu also pointed to bright spots in decentralized finance (DeFi), noting that staking and real-world asset (RWA) tokens are gaining traction. Ethereum ETFs, expected to benefit from the SEC’s recent staking exemption, could help further institutional adoption in the DeFi space.
Bottom Line:
Despite near-term volatility caused by profit-taking and geopolitical risks, technical indicators and market behavior suggest that crypto markets are stabilizing. With increasing institutional engagement and diversification into altcoins and DeFi, long-term sentiment remains bullish.
