Bitcoin has largely remained stagnant, inching up a mere 0.6% over the past day, while the broader cryptocurrency market, as represented by the CoinDesk 20 Index, nudged slightly higher by 0.4%. Meanwhile, gold has stolen the spotlight, surging past $3,500 per ounce for the first time—an ascent driven by investor anticipation that the Federal Reserve might soon cut interest rates.
Gold Shines Amid Investor Jitters
Gold’s remarkable rise has helped the tokenized gold market surpass a $2.5 billion valuation. Investors are gravitating towards the precious metal amid concerns about burgeoning government debt, which has sparked a sell-off in long-term government bonds. Across the globe, yields on these bonds are climbing to levels not seen in years—Japan’s 30-year government bond yield hit a record 3.28%, while the U.S. 30-year Treasury yield is nearing 5%. British gilts have soared to 5.7%, a height last observed in 1998.
Despite this upheaval, the crypto market seems unfazed. Bitcoin’s volatility index on Deribit has slumped to 38.1, its lowest since late 2023, as capital appears to be shifting towards ether. As explored in Bitcoin Undervalued Versus Gold as Volatility Collapses, JPMorgan Says, the current market conditions have led to discussions about Bitcoin’s valuation relative to gold.
Ether Gains Traction, Regulatory Clarity Emerges
In contrast to bitcoin’s stagnation, ether (ETH) has attracted significant attention. Last month saw spot ether ETFs rake in a net $3.87 billion, a stark contrast to the $751 million net outflows from spot bitcoin ETFs. This shift is also evident on-chain, reflecting a broader market rotation. Ethereum’s momentum is further highlighted in Ethereum Outpaces Bitcoin as ETF Inflows Top $1.2 Billion Amid Market Lull, underscoring its growing appeal among investors.
Meanwhile, a joint statement from the SEC and CFTC has sought to clarify rules for compliant spot crypto trading. However, the announcement failed to significantly stir the crypto market, possibly as investors await the U.S. jobs report due Friday. A lower-than-expected jobs figure could coax the Federal Reserve closer to lowering rates, potentially invigorating the market.
Market Dynamics and Future Outlook
While bitcoin’s dominance has ticked down to around 58%, altcoins like ether and solana have outperformed, with gains of 21% and 27.5% respectively over the past month. Traders are recalibrating their strategies, as bitcoin’s rise to a $124,000 record last month shifted the narrative towards its correlation with the tech sector.
The derivatives market paints a mixed picture. Total open interest across perpetual instruments has climbed to $114 billion. Notably, bitcoin trades between two significant liquidation clusters, indicating potential volatility ahead.
As September unfolds—a historically challenging month for crypto, with bitcoin recording an average drop of 3.29%—investors remain on edge. The anticipated U.S. labor market report could set the tone for the remainder of the month, raising questions about whether bitcoin can break free from its current doldrums.
Yet, amid these dynamics, the broader question remains: Will the crypto market see a resurgence, or will gold continue to steal its thunder? As the markets await pivotal economic data, the path forward remains uncertain, leaving investors to ponder which way the scales will tip.
Source
This article is based on: Bitcoin Treads Water, Gold Extends Gain as U.S. Jobs Report Looms: Crypto Daybook Americas
Further Reading
Deepen your understanding with these related articles:
- Bitcoin Whale Turns To Ethereum, Drives $3.5 Billion In Crypto Transactions
- Best Altcoins to Buy After Sudden Whale Shift from Bitcoin to Ethereum
- ‘Bitcoin Is King’: Major Cryptocurrency Shuts Altseason Hype With $440 Million
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.
