Bitcoin News Today: Institutional Bets and Fed Moves Ignite Crypto Crossroads

The Federal Reserve has shifted toward a near-certain interest rate cut in September, a move triggered by a weaker-than-expected jobs report that highlighted slowing labor market growth. The central bank's decision follows months of deliberation between inflation control and economic stimulus, as indicated by recent data showing the U.S. economy added only 22,000 jobs in August—far below the 75,000 forecast. The unemployment rate rose to 4.3%, and previous months' employment figures were revised downward. Market expectations, as captured by the CME Group's FedWatch tool, now price a 99% probability of a rate cut and a 14% chance of a larger-than-usual 50-basis-point reduction at the September 16–17 meeting [2]. This shift in monetary policy is expected to provide a boost to risk assets, including cryptocurrencies, which are often sensitive to changes in interest rate environments [3].

Bitcoin (BTC) is currently trading around $110,700, having seen a 2% weekly gain and net inflows of $246 million into U.S. spot Bitcoin ETFs. The price has oscillated between $107,250 and $113,390 in early September, with key resistance levels at $116,000 and $124,474. Analysts have highlighted that if BTC can sustainably break above $116,000, it may signal the start of a new uptrend that could push the price toward $120,000 and beyond. However, a breakdown below $104,000 could see the price fall to as low as $93,000, depending on market sentiment and macroeconomic developments [1]. On-chain data from Glassnode underscores the importance of this level for confirming bullish momentum [1].

Ethereum (ETH), on the other hand, has faced a more challenging week. While it remained relatively stable within a $4,260 to $4,490 range, it closed with a 1.79% weekly decline. U.S. spot Ethereum ETFs recorded outflows of $787 million, a stark contrast to the inflows seen in Bitcoin ETFs. Despite this, ETH has attracted attention due to growing institutional demand. For example, BitMine added 38,708 ETH to its treasury, a move that increased Ethereum's total treasury holdings beyond $8 billion. Additionally, Ethereum's price outperformance against Bitcoin in recent months—up 67% versus Bitcoin’s 18%—suggests a shift in investor preferences toward the utility-driven asset [4]. Analysts like James Seyffart of Bloomberg have noted that Ethereum's role in smart contracts and decentralized finance continues to attract speculative and institutional capital [4].

The broader cryptocurrency market has been influenced by the interplay between macroeconomic factors and institutional activity. Bitcoin’s inflows, particularly in the early part of September, have been bolstered by regulatory clarity and the continued accumulation of Bitcoin by companies like MicroStrategy and MARA Holdings. Meanwhile, Ethereum’s recent protocol upgrades—such as the integration of zkEVM and the upcoming “Glamsterdam” and “Pectra” mainnet updates—have reinforced its position as a leading platform for decentralized finance and smart contracts. Ethereum’s transaction volume and daily fees remain higher than Bitcoin’s, reflecting its more diverse use cases and network activity [4].

Looking ahead, the impact of the Fed’s rate cuts on the crypto markets remains a key focal point. Historical trends indicate that lower interest rates can drive capital toward higher-risk, higher-return assets such as Bitcoin and Ethereum. With Bitcoin currently trading near critical support and resistance levels, and Ethereum showing signs of institutional interest, the market is poised for potential volatility in the coming months. Analysts remain divided on whether the Fed will opt for a larger-than-expected cut, but the broader trend suggests a more accommodative monetary policy that could benefit crypto assets [1]. As both BTC and ETH navigate this evolving landscape, their performance will continue to be closely monitored by traders and institutional investors alike.

Source:

[1] 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)

[2] 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)

[3] Jobs slowdown seals Fed rate cut as White House criticizes (https://finance.yahoo.com/news/jobs-slowdown-seals-fed-rate-cut-as-white-house-criticizes-powell-for-not-acting-sooner-150805909.html)

[4] Bitcoin vs Ethereum Weekly Showdown: Price Moves, (https://coingape.com/trending/bitcoin-vs-ethereum-weekly-showdown-price-moves-major-wins-and-key-news/)

[5] Bitcoin vs. Ethereum: Comparative Report (https://messari.io/compare/bitcoin-vs-ethereum)