Bitcoin News Today: Bitcoin's Bull Run Gains Steam as Fed Eases Policy

The Federal Reserve is now nearly certain to cut its benchmark interest rate in September by at least 25 basis points and possibly 50, following the release of weak jobs data that signaled a slowdown in hiring. The market has shifted its focus from whether a rate cut will occur to the size of the cut. Investors now expect a 14% chance of a 50-basis-point reduction, which would bring the rate to a range of 3.75% to 4%, according to the CME Group's FedWatch tool. This shift reflects a growing consensus that the central bank will prioritize supporting the faltering labor market over concerns about inflation, despite the risk of tariffs pushing inflation higher. The uncertainty over a balanced approach to its "dual mandate" has led to a reassessment of the economic outlook, with market participants pricing in a larger cut than previously anticipated [1].

In response to the anticipated rate cut, several cryptocurrencies have shown signs of potential growth. Bitcoin (BTC) has recently rallied above $113,000, pushing closer to its range highs and generating a breakout signal for multiple altcoins. According to market analysis, if BTC can break through the $116,000 resistance level, it could initiate a new leg of an uptrend. The cryptocurrency's performance is closely watched by analysts, with some suggesting that its fractal cycle may end in October, potentially leading to a bear market in 2026 if it tops out in that timeframe. The buying pressure observed in BTC suggests that investors are optimistic about its prospects, particularly in the context of a potential Fed rate cut [2].

Ethereum (ETH) is another coin that could benefit from the anticipated rate cut. ETH has been trading in a tight range between $4,500 and $4,250, with a balance between supply and demand. A breakout above $4,500 would indicate renewed bullish momentum and could lead to a rally toward $4,664 and potentially $4,957. The current market conditions suggest that ETH is in a consolidation phase, with the 20-day exponential moving average acting as a key technical indicator. If the price rises above this level, it would signal the bulls are regaining control, reinforcing the expectation of a potential price increase [2].

Solana (SOL) is also positioned to benefit from the Fed's rate cut. SOL has shown resilience by forming a bullish ascending triangle pattern, indicating potential for a significant price move. A break and close above the $218 resistance level would confirm the pattern and could lead to a rally toward $240 and eventually $260. The technical indicators suggest that the bulls are attempting to seize control, and a successful breakout could signal the start of a new upward trend. However, the bears remain a threat, with the potential to pull the price down if they manage to invalidate the bullish setup [2].

The anticipated Fed rate cut has also influenced the market's perception of Bitcoin's dominance in the cryptocurrency space. According to Pierre Rochard, CEO of The Bitcoin Bond Company, there is no chance that altcoins like Ethereum, Solana, or XRP will overtake Bitcoin as the dominant cryptocurrency. Rochard argues that Bitcoin's monetary thesis, fixed supply, and strong network effects position it as the undisputed leader in the crypto market. While altcoins rely on utility and application growth, Bitcoin's reliability as a store of value and its global recognition give it a significant edge. The current market dynamics support Bitcoin's dominance, with its price outperforming the other major cryptocurrencies in the past 24 hours [3].

As the Federal Reserve prepares to cut rates in September, the cryptocurrency market is closely watching for signs of increased liquidity and investor confidence. The anticipated rate cut could provide a much-needed boost to the crypto market, potentially leading to a new bull cycle. However, the long-term prospects for cryptocurrencies will depend on the broader economic environment and regulatory developments. The market's response to the rate cut will be a key indicator of whether the anticipated growth in crypto assets will materialize or if the sector will remain in a period of consolidation [2].

Source: [1] Key Takeaways (https://www.investopedia.com/job-report-seals-federal-reserve-interest-rate-cut-in-september-11804268) [2] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, SUI (https://cointelegraph.com/news/price-predictions-9-5-btc-eth-xrp-bnb-sol-doge-ada-link-hype-sui) [3] XRP, SOL, and ETH Can Never Flip Bitcoin (https://www.mexc.fm/en-TR/news/xrp-sol-and-eth-can-never-flip-bitcoin/86189)