Bitcoin News Today: Bitcoin’s Bull Run Hinges on Fed’s Next Move

The Federal Reserve’s decision to cut interest rates in September has become increasingly certain following a weak jobs report, according to market analysis and forecasts. The central bank is now expected to reduce its benchmark rate by at least 25 basis points, with some market participants pricing in a larger 50 basis point cut to a range of 3.75% to 4% [1]. The latest employment data, which showed a significant slowdown in hiring, has shifted the Fed’s balance of risks, prompting officials to prioritize the health of the labor market over the inflationary pressures caused by President Donald Trump’s tariffs [1].

In the cryptocurrency market, Bitcoin (BTC) has surged above $113,000, signaling a potential breakout that could boost the broader crypto market. This movement has been accompanied by a shift in market sentiment, with investors closely monitoring key price levels, particularly $116,000, as a possible catalyst for an extended bullish trend [2]. While Bitcoin's price has shown volatility, with a long wick on Friday’s candlestick indicating selling pressure at higher levels, analysts suggest the price could continue to rise if it sustains above the 20-day exponential moving average (EMA) [2].

Among the altcoins, Ethereum (ETH), Solana (SOL), and XRP are being watched as potential beneficiaries of the Fed’s rate cut. Ethereum has been trading in a tight range between $4,500 and $4,250, and breaking above $4,500 could signal renewed bullish momentum [2]. Solana, which has formed a support level at $198, could see a rally to $240 if it breaks out of its current trading range [2]. XRP, on the other hand, faces resistance at $2.73, and a break below this level could lead to further declines toward $2.20 [2].

Despite the potential for growth, crypto expert Pierre Rochard argues that XRP, SOL, and ETH can never overtake Bitcoin in terms of market dominance. Rochard emphasizes that Bitcoin’s design as a store of value, with a fixed supply of 21 million coins, gives it a unique advantage over utility-based tokens [3]. While altcoins derive value from their network usage, Bitcoin’s strength lies in its monetary fundamentals and network effects, which have solidified its position as the largest and most recognized cryptocurrency [3].

The broader cryptocurrency market is also being shaped by evolving regulatory landscapes. In the United States, the GENIUS Act has introduced stricter guidelines for stablecoins, requiring a 1:1 reserve ratio in highly liquid assets [4]. Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) Regulation aims to provide a unified framework for digital assets, offering a “European passport” for compliance across 27 member states [5]. These regulatory developments highlight the growing institutional interest in crypto and could influence market dynamics as governments seek to balance innovation with investor protection [4].

As the Fed prepares to announce its decision, the cryptocurrency market remains in a state of anticipation. A rate cut is widely seen as a catalyst for risk-on assets, including crypto, and could provide a tailwind for Bitcoin and selected altcoins. However, investors should remain cautious, as the market's response to macroeconomic factors can be unpredictable. The Fed’s move may also influence global monetary policies, particularly in regions such as China Hong Kong and China Macau, where crypto markets are closely integrated with international financial flows [1].

Source:

[1] Fed Rate Cut Now Appears Certain After Weak Jobs Report (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)

[4] Crypto Rules in Europe vs. the US: Does Your Stablecoin Strategy Need To Change? (https://www.nasdaq.com/articles/crypto-rules-europe-vs-us-does-your-stablecoin-strategy-need-change)

[5] Crypto Regulation in the USA, UAE and EU: A Full Comparison (https://irinauae.law/en/blog/crypto-regulation-usa-uae-eu)