Bitcoin Nears $112K as Rate-Cut Speculation Supports Market; Altcoins Show Mixed Moves

Bitcoin (BTC) held steady near $111,600 on Friday morning, showing resilience even as macroeconomic concerns weighed on global risk assets. Ether (ETH) dipped 0.7% to $4,330, while Solana (SOL) climbed 1.3% to over $204. XRP (XRP) traded near $2.81, flat on the day but up 3.5% over the week.

The market’s focus remains on U.S. labor data and evolving expectations around Federal Reserve policy. Friday’s nonfarm payroll report is widely expected to show rising unemployment, strengthening bets on a September rate cut. However, traders are no longer anticipating an extended easing cycle.

“While higher unemployment points to a likely mid-September rate cut, reductions for the rest of the year are expected to be limited,” said Jeff Mei, COO at BTSE. “The Fed is cautious about flooding the economy with liquidity due to inflation concerns. This dynamic has fueled gold’s rally while cryptocurrencies and equities softened.”

Gold recently hit fresh highs above $3,500 per ounce, reflecting strong demand for hard assets—a trend increasingly compared to bitcoin.

“Bitcoin has moved beyond speculation, emerging as a store of value and a hedge against currency debasement, fiscal instability, and geopolitical risk,” said Vikrant Sharma, CEO of Cake Wallet. “Its volatility has eased but remains appropriate for an asset just over a decade old. The narrative has shifted: BTC is now a strategic allocation rather than a purely speculative instrument.”

Sharma noted that periods of reduced volatility often precede major price moves. “A $100,000-plus floor makes Bitcoin feel less like a high-beta trade and more like a global reserve asset in the making,” he said.

Bitcoin’s dominance remains strong at roughly 60% of total crypto market capitalization, providing stability even as altcoins fluctuate.

“Despite recent market swings, Bitcoin has shown resilience, dropping only 3% while maintaining its market share,” said Nassar Achkar, Chief Strategy Officer at CoinW. “Potential Fed rate cuts later this year, coupled with ongoing institutional adoption via ETFs and digital asset allocations, support Bitcoin’s fundamentals. Traders should, however, remain alert to policy shifts that could trigger short-term volatility.”

As the crypto market enters September, historically one of its weaker months, participants are closely monitoring BTC’s floor and potential catalysts for the next major move.