Bitcoin edges higher on Fed rate cut bets, altcoins remain weak
Bitcoin rose slightly on Monday, extending its recent gains as traders grew more confident that the U.S. Federal Reserve will cut interest rates this week.
However, the broader crypto market retreated. Gains in Bitcoin were capped by fresh concerns about the long-term sustainability of corporate treasuries, which have been a key source of buying power for BTC this year.
By 02:01 ET (06:01 GMT), Bitcoin was up 0.7% at $116,527, adding to last week’s 5% rally.
Bitcoin rebounds but corporate treasury concerns weigh
Bitcoin has steadily recovered from its sharp mid-August to early-September losses. Still, the currency remains well below its August highs due to profit-taking and worries surrounding corporate treasury demand.
Concerns intensified after Strategy (formerly MicroStrategy, NASDAQ: MSTR) was excluded from the S&P 500 index. Analysts at JPMorgan warned that the lack of index inclusion weakens the case for large-scale treasury adoption of Bitcoin.
This skepticism left crypto markets trailing behind broader risk assets like equities, which rallied in recent weeks.
Fed rate cut expected, but long-term outlook uncertain
Markets now expect the Federal Reserve to deliver at least a 25 basis point rate cut this week. According to CME FedWatch, traders priced in a 99.6% chance of a 25 bps cut, with only a 0.4% chance of no change.
Lower interest rates typically support speculative assets such as cryptocurrencies by boosting liquidity.
Still, uncertainty lingers. The Fed has stressed caution over sticky inflation, and Chair Jerome Powell has remained non-committal about long-term easing. Despite mounting pressure from the White House to cut more aggressively, Powell’s stance suggests a cautious path ahead.
Crypto prices today: altcoins lag behind Bitcoin
While Bitcoin stayed firm, altcoins moved lower after a strong week. Many tokens are still recovering from losses seen through mid-August and early September.
- Ethereum (ETH) held steady at $4,669.
- XRP slipped 1.1% to $3.05.
- Solana (SOL) dropped 1.4%.
- Cardano (ADA) fell 2.5%.
- Among meme coins, Dogecoin (DOGE) declined 3.7%, while $TRUMP lost 1.3%.
