Bitcoin News Today: Bitcoin Stalls as Market Wits on Fed’s Next Move

Bitcoin’s price has remained relatively stable around $110,000 amid anticipation of the U.S. Federal Reserve’s upcoming interest rate decision. Despite the release of weaker-than-expected August nonfarm payrolls data—showing an increase of only 22,000 jobs—cryptocurrency markets have yet to see a significant rally. The CME FedWatch Tool currently indicates a 100% probability of a rate cut at the September 17 meeting, with a 10% chance of a larger-than-expected 50-basis-point cut. However, analysts caution that the market may have already priced in some degree of easing, which has limited the potential for strong upward movement in Bitcoin and other major cryptocurrencies.

Institutional profit-taking and muted ETF inflows have contributed to the consolidation in Bitcoin’s price. According to Rachael Lucas of BTC Markets, while the soft jobs data has bolstered expectations for a dovish Fed, institutional players are locking in gains, reducing speculative flows into the asset. “Bitcoin is consolidating in a tight range, with key support at $110,000 and resistance at $113,400,” Lucas said. Vincent Liu of Kronos Research echoed this sentiment, noting that without stronger ETF inflows or broader liquidity expansion, breaking above $120,000 will remain challenging. Additionally, the first week of September saw weaker ETF flows compared to the previous two months, signaling a possible slowdown in institutional-driven market momentum.

Bitcoin Cash (BCH) has emerged as a standout performer in the current market environment, rising approximately 10% over the past week to trade above $602. This surge has positioned it as the top-performing asset in the top 20, as Bitcoin has stalled near $111,000. Traders appear to be shifting capital toward Bitcoin-adjacent assets with lower resistance levels. BCH’s market cap now stands at nearly $11.98 billion, supported by $326 million in 24-hour trading volume. Meanwhile, Ethereum and Chainlink have lagged, with both seeing declines in the past week, reflecting broader profit-taking and regulatory uncertainty, particularly in the case of Ethereum.

The broader regulatory environment for crypto assets continues to evolve, especially in the United States. The GENIUS Act, recently signed into law, marks a significant step in providing a federal regulatory framework for stablecoins, while the European Union’s Markets in Crypto-Assets (MiCA) regulation continues to offer a more comprehensive regulatory structure. U.S. regulators, including the SEC and CFTC, are also moving toward greater coordination and clarity for digital asset markets. Acting CFTC Chairman Caroline D. Pham emphasized the importance of regulatory harmonization and the need to avoid overburdensome frameworks that could stifle innovation. The joint SEC-CFTC roundtable planned for September 29 aims to facilitate further alignment between the agencies and promote the growth of U.S. digital asset markets.

Looking ahead, the market remains closely watching both on-chain and off-chain indicators. On-chain data suggests that stablecoin supply is at record highs, potentially signaling a buildup of “dry powder” for future price movements. Exchange balances for Bitcoin and Ethereum continue to decline, which may reduce near-term selling pressure. Off-chain, regulatory developments—such as the SEC and CFTC’s efforts toward harmonized frameworks—and ETF flow data remain key drivers of market sentiment. Additionally, the release of the U.S. initial jobless claims report the day after the FOMC meeting could amplify the impact of the Fed’s decision on asset prices.

Source: [1] Bitcoin stalls around $110000; Fed rate cut may not spark ... (https://www.theblock.co/post/369743/bitcoin-rate-cut-may-not-spark-rally) [2] Bitcoin Cash (BCH) Emerges Top Crypto Gainer as Ethereum ... (https://finance.yahoo.com/news/bitcoin-cash-bch-emerges-top-213243634.html) [3] El Salvador Celebrates Four-Year Bitcoin Anniversary, but ... (https://cointelegraph.com/news/el-salvador-bitcoin-anniversary-mixed-results-4-years) [4] What investors should expect from stocks after the Fed's ... (https://www.marketwatch.com/story/what-investors-should-expect-from-stocks-after-the-feds-september-meeting-68af2876) [5] Crypto Rules in Europe vs. the US: Does Your Stablecoin ... (https://finance.yahoo.com/news/crypto-rules-europe-vs-us-184431208.html) [6] Senate Still Wrestling With Crypto and Digital Asset Policy (https://www.bankingexchange.com/news-feed/item/10406-senate-still-wrestling-with-crypto-and-digital-asset-policy) [7] Remarks by Acting Chairman Caroline D. Pham before ... (https://www.cftc.gov/PressRoom/SpeechesTestimony/opapham18)