Crypto markets traded sideways heading into Monday, with bitcoin (BTC) holding near $115,000 and ether (ETH) above $4,200, as traders weigh whether a potential Fed rate cut in September will extend digital assets’ risk-on momentum or revive correlations with gold.
Weekend action suggested profit-taking across the board. Bitcoin ticked lower by 2.4% in 24 hours, Ether lost 4.4% and Solana’s SOL (SOL) and XRP (XRP) dropped nearly 5% to lead losses among majors.
BNB (BNB) hovered around $833 after a modest daily dip, Dogecoin (DOGE) eased toward 22 cents and Cardano’s ADA (ADA) held near 91 cents even as intraday sellers leaned on liquidity.
The weekend tape reflected investors waiting for U.S. equities to open, with many expecting crypto to mirror stock indices in the absence of new macro signals. Still, the looming September Fed meeting continues to anchor positioning, with rate cut expectations now deeply priced into bond and futures markets.
Nick Ruck, director at LVRG Research, noted that Bitcoin’s role as “digital gold” could come back into play if monetary easing takes hold.
“The Fed’s potential rate cuts in September could reignite Bitcoin’s correlation with gold as a liquidity-driven hedge, but recent decoupling shows gold thriving on central bank demand while BTC remains tethered to risk-on sentiment,” he said.
“Historically, both assets converge during monetary easing, yet gold’s record highs amid geopolitical tensions highlight its enduring safe-haven role, while Bitcoin’s narrative hinges on institutional adoption and Fed policy clarity,” Ruck added.
Gold, meanwhile, has surged to all-time highs on record central bank buying and geopolitical hedging, decoupling from bitcoin’s equity-linked trajectory.
Market participants say the coming weeks may provide clarity. Jeff Mei, COO at BTSE, said broader equities and retail earnings could serve as a trigger.
“Markets didn’t see much movement over the weekend, so we’d expect cryptocurrencies to trade in line with stocks when the US market opens later today,” he said in a Monday note to CoinDesk.
“Right now it’s difficult to predict how traders will react once the market opens, given that there aren’t any major economic signals to be announced this week. There are, however, a number of retail companies set to announce earnings, such as Wal-Mart, Lowe’s and Target. Their data and outlook could give an indication as to how tariffs and inflation are affecting the business environment — it’d be interesting to see how markets react,” Mei added.
That leaves crypto tethered to equities in the short term, but with September shaping up as the month that could redefine if bitcoin resumes its old safe-haven trade alongside bullion or keeps riding the liquidity cycle alongside risk assets.
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