Bitcoin prices edged higher on Friday, supported by a broader rally in risk-driven assets as markets continued to bet on a Federal Reserve interest rate cut next week.
The world’s largest cryptocurrency rose 1.2% to $115,604 by early Friday trading (01:56 ET/05:56 GMT). Bitcoin is now up nearly 5% for the week, recovering modestly after pulling back from record highs set in mid-August. However, it remained capped below the $120,000 level.
Market sentiment toward Bitcoin was tempered by renewed doubts over the sustainability of corporate Bitcoin treasuries. Earlier this month, Strategy (formerly MicroStrategy), the largest corporate holder of Bitcoin, was denied entry into the S&P 500 index, a setback that analysts at JPMorgan described as a major blow for companies heavily reliant on crypto reserves.
JPMorgan noted the decision signaled caution by the index committee, wary of adding firms that function more like Bitcoin funds. While Strategy has gained listings in other benchmarks such as the Nasdaq 100 and Russell 2000, analysts believe this trend may be reaching its limits, raising questions about the firm’s long-term model.
Despite outperforming Bitcoin in 2024, Strategy’s stock is up only 8.6% so far in 2025, compared to Bitcoin’s 24% year-to-date rise. The company continues to hold over 600,000 BTC in its corporate treasury.
Meanwhile, broader crypto markets advanced on Friday as expectations for a Fed rate cut supported demand for speculative assets. Markets are pricing in a 94.6% probability of a 25 basis point cut at the September 16–17 meeting, with a smaller chance of a deeper 50 bps reduction. Lower rates typically boost liquidity and risk appetite, favoring digital assets.
Altcoins also rallied. Ethereum (ETH) climbed 2.6% to $4,552, up 6.6% for the week. XRP gained 2.2% to $3.06, advancing 8.8% weekly. Cardano (ADA) rose 1.8%, Solana (SOL) surged 6.7%, while meme coins Dogecoin (DOGE) added 5% and $TRUMP edged up 0.9%.
