Bitcoin Hovers Near $110K as Traders Monitor Fed Signals, Gold Hits New Highs

Bitcoin (BTC) traded around $110,000 Tuesday morning, even as gold surged past record levels, highlighting how crypto investors are positioning ahead of potential Federal Reserve moves.

After a week of declines, major cryptocurrencies saw a rebound Tuesday. Bitcoin gained 2.7%, while Ether (ETH) remained largely flat. Other altcoins, including XRP ($2.80), Solana (SOL), and Dogecoin (DOGE, $0.21), climbed more than 3%, lifting overall crypto market capitalization by 1.8%.

In stark contrast, gold for immediate delivery surged to $3,508 an ounce, surpassing its April peak. The precious metal has jumped over 30% year-to-date, outperforming Bitcoin’s 16% gains in 2025 and cementing its position as the top-performing major commodity.

Traders attribute the moves to Fed Chair Jerome Powell’s recent Jackson Hole remarks, which left the door open for potential rate cuts in September. Weakness in the U.S. jobs market has reinforced expectations for easing, prompting investors to seek protection in hard assets.

Nick Ruck, director at LVRG Research, noted the growing complementarity between gold and Bitcoin:
“Gold’s surge reflects a structural hedge against monetary debasement and equity volatility, while Bitcoin’s evolving role as an inflation hedge suggests these assets are increasingly working together rather than competing.”

Ethereum, however, is showing signs of consolidation. Daily trading volumes have declined since July peaks, and on-chain data indicates a 28% drop in active addresses. Augustine Fan, head of insights at SignalPlus, noted a rotation within digital asset tokens (DATs), leaving major coins largely on the sidelines:
“The DAT premium softened toward lows, with new inflows peaking. Solana’s recent rebound in total value locked (TVL) has allowed it to decouple from broader weakness.”

Traders are now focusing on Friday’s U.S. non-farm payrolls, with expectations for approximately 45,000 new jobs, private payrolls near 60,000, and an unemployment rate edging up to 4.3%. A softer-than-expected report could cement a September rate cut, potentially reigniting risk appetite. Until then, crypto markets remain cautious, with options-based downside protection at multi-week highs.

For market participants, the narrative is split: gold’s strength signals defensive demand, while Bitcoin’s slower recovery underscores lingering caution. The next few sessions will be pivotal in determining which asset will set the tone for crypto heading into September—a historically weak month for digital assets.