Crypto Markets Rally Despite Geopolitical Tensions as Traders Focus on Institutional Momentum

Cryptocurrencies pushed higher on Monday, brushing aside renewed geopolitical tension in the Middle East as market participants shifted their focus to institutional developments and the upcoming Federal Reserve policy meeting.

Bitcoin (BTC) climbed 3.1% over the past 24 hours to trade at $108,600, inching closer to its all-time high. Broader gains were seen across the market, with the CoinDesk 20 Index—tracking the top 20 crypto assets, excluding stablecoins, memecoins, and exchange tokens—rising 4.3%.

Altcoins outperformed, with XRP jumping to $2.1252 and Chainlink (LINK) rallying to $13.12, both posting 6–7% gains. Most other major tokens also saw increases of at least 3%.

In traditional markets, risk appetite made a comeback following last week’s Israel-Iran missile exchanges. The S&P 500 rose 0.9%, and the Nasdaq gained 1.4%, while safe-haven gold slipped 1.5%.

Crypto-related equities followed suit. Coinbase (COIN) surged 7.7%, and Circle (CRCL) closed up 13%. Bitcoin miners Bitdeer (BTDR) and Hut 8 (HUT) gained 6.9% and 5.6%, respectively. The only notable laggard was MicroStrategy (MSTR), down 0.2%, while competitor Metaplanet soared 25% on the Tokyo Stock Exchange.

Fueling the crypto rally was institutional news: JPMorgan filed a trademark application for a digital asset platform offering trading, payments, exchange, and issuance services. At the same time, Purpose Investments announced plans to launch a spot XRP ETF in Canada, marking a growing shift toward altcoin-focused investment products.

Altcoin Season? Not Quite Yet

Despite strong altcoin performance, analysts urge caution on calling the return of an “alt season.” According to Nansen analyst Nicolai Søndergaard, Bitcoin remains the primary driver of market sentiment.

“BTC has mostly served as a trigger for altcoins,” Søndergaard noted. “While some alts perform well, Bitcoin’s moves—especially around all-time highs—still lead market momentum.”

He added that while sectors like DeFi have seen temporary bursts of strength, sustained altcoin rallies remain elusive. “In the bigger picture, most alts are still in drawdown mode,” he said.

BTC Rebound Hints at Market Bottoming

Analysts at Bitfinex observed that last week’s drop in the Fear and Greed Index into “Fear” territory, coupled with a spike in liquidations and net taker selling, mirrors past capitulation phases that often precede market recoveries.

“If BTC can maintain support in the $102,000–$103,000 range, it suggests selling pressure is being absorbed,” the analysts noted. “This could set the stage for a broader market rebound.”

All Eyes on the Fed

From a macroeconomic standpoint, investor attention is locked on the Federal Open Market Committee (FOMC) meeting this week. Markets widely expect the Fed to hold interest rates steady in both June and July meetings.

Still, Fed Chair Jerome Powell’s tone during the post-meeting press conference is likely to dictate near-term volatility.

“It’s not the decision itself, but Powell’s language that will move markets,” said Swissblock in a Monday note. “Expect sharp, reactive trading across commodities, yields, and risk assets—including crypto.”