Concerns over President Trump’s tariff policies and the Federal Reserve’s reluctance to cut rates soon triggered a crypto market dip early this week.

Bitcoin (BTC) and ether (ETH) started Monday on steady footing after sharp sell-offs on Friday and Saturday, which were driven by the largest outflows from spot Bitcoin ETFs in months.

Bitcoin ETFs experienced nearly $1 billion in withdrawals between Thursday and Friday, pushing BTC down to around $114,000 before it rebounded modestly. Ether saw $152 million in outflows on Friday, ending a nearly month-long streak of daily inflows and weighing on its price momentum.

This downturn coincided with fresh tariffs announced by U.S. President Donald Trump targeting Asia and Europe, which dampened global market sentiment and pressured risk assets.

Jeff Mei, COO at BTSE, told CoinDesk on Monday, “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, suggesting the fear may be overdone.”

This cautious optimism shows in price action: early Asian trading saw Bitcoin hold near $114,500, while ether remained above $3,550 — both within short-term support levels.

Among retail favorites, XRP and Dogecoin (DOGE) led Monday’s market gains, rising as much as 5%. Other tokens like Cardano’s ADA, Binance Coin (BNB), and Solana (SOL) gained over 3%.

Institutional involvement appears to be providing some stability amid volatility. Augustine Fan, Head of Insights at SignalPlus, noted, “The rising presence of professional desks has brought deeper secondary liquidity. This would have been a far messier unwind in the pre-ETF era.”

Looking ahead, Fan said, “Q4 will be crucial, with the Fed’s full return to the spotlight and tariff-related inflation effects beginning to show in the real economy. We believe it’s an opportune time to reduce risk exposure ahead of a busy September and year-end.”

Despite these factors, ETF buyers remain largely sidelined, keeping overall sentiment cautious. Bitcoin is still below the key $118,000 breakout level, while ether needs to break above $3,500 to avoid triggering further systematic selling.

On the macro front, conditions offer some support. U.S. equity futures rose 0.4% following Friday’s weak jobs report, which increased expectations of a Fed pivot. The MSCI Asia Pacific Index erased early losses, Hong Kong tech stocks ended a seven-day losing streak, and 10-year Treasury yields ticked up to 4.24%.

Oil prices slipped after OPEC+ concluded a series of production hikes, while the U.S. dollar softened slightly.