Bitcoin Recovers Toward $112K as Rate Cut Bets Grow, But Caution Remains
Bitcoin prices edged higher on Tuesday, recovering part of last week’s losses as traders increased bets on an imminent U.S. interest rate cut. However, lingering concerns over corporate Bitcoin-buying strategies limited gains and kept investors cautious.
Broader cryptocurrency markets also saw a mild rebound after steep declines earlier in September. Still, crypto lagged behind rallies in equities and gold, showing little benefit from the broader improvement in risk sentiment.
As of 00:51 ET (04:51 GMT), Bitcoin rose 0.8% to $111,812, briefly climbing above $112,000.
Corporate Treasury Doubts Pressure Bitcoin
Skepticism around the long-term profitability of corporate Bitcoin accumulation has weighed on the market in recent weeks. The downturn followed Bitcoin’s sharp pullback from record highs in mid-August.
Companies like Strategy (formerly MicroStrategy) and Japan’s Metaplanet Inc., both major corporate holders of Bitcoin, continued to buy the token. However, their shares slipped in recent sessions, reflecting wider declines in crypto-related stocks.
Analysts warn that while this strategy fueled gains in the past two years, it leaves company shares heavily exposed to Bitcoin’s volatility. Critics argue the approach depends entirely on higher Bitcoin prices and could lose appeal as more firms adopt similar policies.
For investors seeking Bitcoin-linked exposure, spot exchange-traded funds (ETFs), launched in U.S. markets last year, now provide a simpler alternative.
Meanwhile, Circle Internet Group (NYSE:CRCL), issuer of stablecoin USDC, slid to a three-month low after Compass Point Research cut its price target and kept a Sell rating. Competition also intensified as decentralized exchange Hyperliquid announced the launch of a rival stablecoin, USDH, with plans to convert $5.4 billion worth of USDC deposits—about 8% of total supply—into USDH.
Altcoins Regain Some Ground
Altcoins also firmed on Tuesday after weeks of losses. Ether rose 0.4% to $4,314, while XRP jumped 3.4% to $2.96. Solana added 3.7% and Cardano gained 3.4%.
Among meme tokens, Dogecoin climbed 2.1%, while $TRUMP advanced 1.7%.
The rebound came as traders increased bets that the Federal Reserve will lower borrowing costs during its September 16–17 meeting. Markets currently price a 90.1% chance of a 25 basis-point cut and a 9.9% chance of a larger 50 bps cut, according to CME FedWatch.
Expectations for easing were driven by signs of cooling in the U.S. labor market. Investors are also awaiting U.S. inflation data for August, which could reveal whether new tariffs introduced by President Donald Trump are driving further price pressures.
