The cryptocurrency market is exhibiting a fascinating divergence, with Bitcoin (BTC) demonstrating remarkable resilience around the $108,700 level despite a risk-off tone in traditional markets. Global equities slid and commodity futures felt the pressure after renewed geopolitical friction, yet Bitcoin has largely held its ground. This stability in the face of macro headwinds has led some analysts to believe that BTC is increasingly being viewed as an asset insulated from global policy and trade disputes. Han Xu, a director at HashKey Capital, suggested that “Bitcoin’s slight price drop from Trump's tariff plans showcases the digital asset's resilient nature and long-term investor confidence,” expressing optimism that this trend will persist through short-term volatility. Currently, the BTCUSDT pair is trading at approximately $108,694, showing a modest 24-hour gain of 0.42% after testing highs near $109,200.

Bitcoin's Tug-of-War: ETF Inflows vs. On-Chain Lethargy

Beneath the surface of this stability lies a tug-of-war between strong institutional demand and weakening on-chain fundamentals. On the bullish side, data from CoinShares confirms the 12th consecutive week of net inflows into crypto investment products, totaling nearly $1 billion last week alone. Bitcoin-focused funds attracted the lion's share with over $790 million, while Ether (ETH) products saw a robust $226 million inflow. This persistent institutional appetite has pushed total crypto exchange-traded fund (ETF) assets under management to a new all-time high of $188 billion. However, this bullish institutional narrative is contrasted by a slowdown in network activity. According to analysis from The Block, Bitcoin’s on-chain activity and implied volatility have plummeted to their lowest levels in nearly two years. This sentiment is echoed by on-chain analytics firm Glassnode, which described the current market state as a “summer lull,” characterized by collapsing trading volumes and a high concentration of unrealized profits among long-term holders—a combination that could fuel a sharp correction if sentiment sours.

Altcoins Navigate Choppy Waters as XRP Shows Strength

The broader altcoin market is still reeling from a recent $1.2 billion futures liquidation event that disproportionately affected leveraged long positions. Despite the cautious mood, several major altcoins are showing signs of life. XRP has emerged as a notable outperformer, with the XRPUSDT pair rallying approximately 2.5% to trade at $2.337. This move is supported by a significant 24-hour trading volume of over 184,000 on the pair. Ether has also posted solid gains, with ETHUSDT climbing 2.5% to around $2,612, though it continues to seek momentum against the market leader, as seen in the ETHBTC pair trading at 0.02414. Elsewhere, Solana (SOL) is trading firmly at $152.37, up 1.7%, and Litecoin (LTC) has risen 2.3% to $88.27. This selective strength suggests traders are rotating capital into majors with perceived fundamental strength while the market awaits a definitive directional cue from Bitcoin.

Geopolitical Tensions and Fed Watch Dominate Sentiment

The market's immediate focus remains fixed on macroeconomic and geopolitical developments. The recent surge in gold and oil prices following heightened tensions in the Middle East has put a spotlight on safe-haven assets. According to Eugene Cheung, Chief Commercial Officer at OSL, Bitcoin often displays a delayed reaction to such macro trends and could see renewed momentum if investors increasingly seek alternative stores of value. All eyes are now turning to this week’s U.S. Federal Reserve meeting. The market is overwhelmingly pricing in a rate hold, but traders will be dissecting Chair Jerome Powell’s commentary for clues on future policy. Jeff Mei, COO at BTSE, anticipates the Fed will “wait for more data before making any big moves later this year,” citing easing inflation and a strong jobs market. Meanwhile, Augustine Fan, Head of Insights at SignalPlus, noted the committee might use recent downside inflation misses to justify a more dovetailed pivot, though the near-term focus will likely remain on geopolitical risk. This indecision is reflected in the market, where, as analyst Alex Kuptsikevich of FxPro noted, sellers remain active near the $110,000 resistance for BTC, even as dip-buyers defend the 50-day moving average.