Bitcoin gained ground on Friday, tracking a broader advance in risk-driven assets as traders held firm to expectations that the Federal Reserve will cut interest rates next week. However, the upside remained capped by growing concerns over the sustainability of corporate Bitcoin treasury strategies.

Bitcoin Price Action

By 01:56 ET (05:56 GMT), Bitcoin rose 1.2% to $115,604.3, marking a weekly gain of nearly 5% after tumbling from its mid-August record highs above $124,000. The cryptocurrency has remained largely rangebound below the $120,000 level.

Corporate Treasury Strategy Under Pressure

Skepticism toward corporate crypto treasuries grew after the rejection of Strategy (formerly MicroStrategy) from S&P 500 inclusion earlier this month. The decision cast doubt on the model of firms heavily tied to Bitcoin holdings, highlighting risks of overexposure.

While such strategies fueled sharp stock price gains in 2024, the momentum has slowed in 2025. Strategy is up about 8.6% year-to-date, compared to Bitcoin’s nearly 24% rise. Analysts note that reliance on Bitcoin appreciation alone makes this approach vulnerable, especially if broader investor fatigue sets in.

Fed Rate Cut Bets Support Crypto

The latest U.S. consumer price index data showed annual inflation rising to 2.9% in August, the highest in seven months. Still, labor market weakness, reflected in higher weekly jobless claims and slower payroll growth, kept markets betting on monetary easing.

Markets are now pricing in a 94.6% probability of a 25-basis-point rate cut at the Fed’s September 16-17 policy meeting, with a 5.4% chance of a deeper 50-basis-point move, according to CME FedWatch.

Lower rates typically benefit speculative assets like crypto by boosting liquidity and risk appetite.

Altcoins Gain Momentum

Broader cryptocurrencies followed Bitcoin higher:

• Ethereum rose 2.6% to $4,552.31, up 6.6% this week.
• XRP climbed 2.2% to $3.07, gaining 8.8% weekly.
• Cardano added 1.8%, while Solana jumped 6.7%.
• Meme tokens also saw traction, with Dogecoin up 5% and $TRUMP token rising 0.9%.

Outlook

While Bitcoin has rebounded from August’s steep losses, its next decisive move will likely hinge on the Federal Reserve’s rate decision next week. A larger-than-expected cut could send the token closer to record highs, while lingering doubts over corporate treasury models may cap sustained upside.