Bitcoin Rebounds Above $110,000 as Fed Easing Bets Grow

Bitcoin staged a recovery on Tuesday, bouncing back above the $110,000 mark amid rising expectations that the Federal Reserve will cut interest rates this month. Traders, however, remain cautious ahead of the all-important U.S. jobs report due later this week.

Bitcoin Rebounds Amid Fed Rate Cut Bets

As of 02:12 ET (06:12 GMT), Bitcoin traded 2% higher at $110,278.3, after swinging between $107,274 and $109,243 in volatile Asian session trading. Despite this rebound, the token is still down nearly 12% from its mid-August record peak above $124,000.

Market sentiment has been buoyed by Fed Chair Jerome Powell’s remarks at Jackson Hole, where he flagged risks from a cooling labor market and left the door open to a September rate cut. According to CME FedWatch, traders now price in an 89% probability of a 25-basis-point cut at the September 16–17 meeting.

The focus now shifts to Friday’s nonfarm payrolls report for August, which economists expect to show moderating job gains. A weaker-than-expected print could cement Fed easing bets and extend Bitcoin’s rebound, while a stronger figure may temper expectations.

Dollar Weakness Supports Alternative Assets

A softer U.S. dollar also lent support to crypto markets. The greenback is trading near multi-week lows against major peers, amplifying flows into alternative assets. Gold climbed to fresh highs, underscoring a broader investor shift into havens and speculative plays.

Trump-Linked Token Struggles at Launch

Meanwhile, the debut of the World Liberty Financial ($WLFI) token, tied to the Trump family’s cryptocurrency venture, saw a weak start. The token dropped in its first day of open-market trading after initial allocations to internal stakeholders, reflecting both political risk and cautious investor sentiment.

Altcoins Trade Mixed

Broader crypto prices were mixed:

• Ethereum (ETH) slipped 0.3% to $4,384.98, after recently coming close to record highs.
• XRP gained 2.7% to $2.81.
• Solana rose 2.4%, Cardano added 2.3%, while Polygon gained 1.7%.
• Dogecoin climbed 1.9%, while the politically themed $TRUMP token fell 5%.