In the ever-turbulent sea of cryptocurrency, the weekend saw notable shifts as Solana’s SOL and XRP took a nosedive of nearly 5%. Bitcoin, meanwhile, held its ground around the $115,000 mark, with Ether hovering above $4,200. Traders are on tenterhooks, eyeing the Federal Reserve’s potential rate cut in September, which could either extend the current risk-on momentum or reconnect digital assets with gold.
Profit-Taking Stirs the Waters
The weekend market activity suggested a wave of profit-taking, with Bitcoin ticking lower by 2.4% and Ether losing 4.4%. Solana and XRP led the pack of decliners, a clear reflection of the cautious sentiment gripping investors. BNB, Dogecoin, and Cardano’s ADA experienced minor losses too, with BNB resting at $833, Dogecoin easing toward 22 cents, and ADA holding near 91 cents. Traders seemed to be in a holding pattern, waiting for U.S. equities to set the tone. This cautious approach echoes the sentiment discussed in Bitcoin $115K Bets in Demand as Downside Fear Grips Market Ahead of U.S. CPI Report.
However, the looming September Federal Reserve meeting remains a pivotal anchor. With rate cut expectations deeply woven into bond and futures markets, the potential for monetary easing could reshape crypto dynamics. As Nick Ruck of LVRG Research noted, Bitcoin’s role as “digital gold” could reemerge if monetary easing takes hold. But he also pointed out the recent divergence: “Gold is soaring on central bank demand, while Bitcoin is still tethered to risk-on sentiment.”
Gold’s Glittering Ascent
Gold’s recent surge to all-time highs has been fueled by record central bank buying and geopolitical dynamics, highlighting its enduring safe-haven allure. This divergence poses a curious scenario for Bitcoin, traditionally seen as a digital counterpart to gold. Ruck elaborated, “Historically, both assets converge during monetary easing, yet gold’s record highs amid geopolitical tensions highlight its enduring safe-haven role, while Bitcoin’s narrative hinges on institutional adoption and Fed policy clarity.”
This raises an intriguing question: Will Bitcoin reclaim its narrative as a hedge akin to gold, or will it continue to dance to the tune of liquidity cycles alongside risk assets? Recent analyses, such as the one in Bitcoin ‘ugly daily candle’ may signal drop below $117K: Trader, suggest potential volatility ahead.
Eyes on Retail Earnings
As market participants brace for clarity in the coming weeks, the interplay between crypto and equities remains in focus. Jeff Mei, COO at BTSE, highlighted the potential influence of broader equities and retail earnings. “Markets didn’t see much movement over the weekend, so we’d expect cryptocurrencies to trade in line with stocks when the US market opens later today,” he stated.
With several retail giants like Wal-Mart, Lowe’s, and Target set to announce earnings, traders are keenly watching for signals on how tariffs and inflation are shaping the business landscape. “It’d be interesting to see how markets react,” Mei mused, acknowledging the unpredictability of trader reactions in the absence of major economic signals this week.
The Uncertain Road Ahead
As August unfolds, the markets are caught in a delicate balancing act. On one hand, the expectation of a Fed rate cut in September looms large, potentially redefining Bitcoin’s trajectory. On the other, the short-term tethering of crypto to equities suggests a continuation of the current risk-on sentiment.
The coming weeks promise to be pivotal, raising questions about whether Bitcoin will align once more with gold’s safe-haven status or continue its liquidity-driven ride. As the market waits for cues, one thing remains certain: the crypto landscape, much like the broader economic environment, is anything but predictable.
Source
This article is based on: Solana’s SOL, XRP Dive 5% Amid Profit-Taking; Bitcoin Traders Eye Gold Divergence
Further Reading
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- Bitcoin Traders Watch CPI for Fed Cues: Crypto Daybook Americas
- Historic Stock Market Crash Patterns Are Back – Will Bitcoin React? | US Crypto News
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
