Bitcoin stalls as Fed rally cools, BOJ turns hawkish
Bitcoin slipped slightly on Friday as optimism over lower U.S. interest rates faded. At the same time, hawkish signals from the Bank of Japan (BOJ) weighed on sentiment.
The world’s largest cryptocurrency fell 0.3% to $116,879.6 by 01:43 ET (05:43 GMT). Despite the dip, Bitcoin was still on track for a 0.9% weekly gain. Broader crypto prices also retreated, trimming recent recoveries from late-August losses.
Buying activity from corporate treasuries, mainly MicroStrategy (NASDAQ: MSTR), failed to lift prices this week. The U.S. Securities and Exchange Commission’s move to simplify crypto exchange-traded product listings also offered little immediate support.
Crypto market momentum slows
Bitcoin recouped some of its late-August declines earlier in September, supported by dip-buying and relief after the Federal Reserve’s widely expected rate cut. But momentum faded as the Fed rejected deeper cuts, citing sticky inflation and a weakening labor market.
Analysts also raised concerns about the long-term sustainability of corporate crypto treasury strategies, adding another layer of caution.
BOJ signals policy tightening
On Friday, the BOJ left rates unchanged at 0.5% but announced plans to sell some of its vast holdings of exchange-traded funds (ETFs) and real estate investment trusts (REITs). Markets viewed the move as hawkish, with speculation growing over a possible October rate hike. The BOJ also flagged ongoing economic challenges in Japan, further unsettling investors.
Altcoins mixed in muted week
Altcoins showed limited movement. Ether slipped 0.8% to $4,532.68 and traded flat for the week. XRP fell 1% to $3.0404, leaving it down 2% weekly.
Binance’s BNB held at $992.90 after briefly crossing $1,000, still set for a 6% weekly gain. Cardano and Solana inched higher, while memecoins Dogecoin and $TRUMP lost more than 1% each.
