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Fed Rate Cut 2025: Bitcoin Volatile While Gold and Stocks Rally
Gold, Equity and Bitcoin are all moving in different directions, but they share one common driver, which is the next Fed Rate Cut meeting on 17 September. Peter Schiff is celebrating, while Dave Ramsey is again calling Bitcoin “dumber than crap.”
All the assets are hitting All time high except BTC.
Gold is trading near a record $3,650. The S & P 500 is at $6,584.29 with an increase of 19.25%. NASDAQ is at $22,141 with a six month increase of 27.96% as per Google Finance. Bitcoin is steady around $116,000 after a two-week rebound.
Investors are now asking the same question: what happens when the Fed finally cuts rates next week?
US Economic Data Supports Rate Cut Expectations
Recent economic data gives the Federal Reserve good reason to act.
PPI: The wholesale price measure, the Producer Price Index (PPI), moderated to 2.6% in August. Core PPI, excluding food and energy, also declined relative to July.
Job Data: Unemployed claims increased to 263,000, the highest in almost four years. That indicates the labor market is softening and puts pressure on the Fed to act to ease policy.
CPI: Inflation came in mixed. Headline CPI gained 0.4% in August, above expectations, whereas core CPI continued unchanged at 0.3%.
Impact on Bitcoin and Crypto Markets
BTC has recovered, gaining around 4.7% in the week.
Whales changed positions, indicating long-term optimism.
Institutional investors (Microstrategy and Metaplanet) have been accumulating.
With $300 million coming into Bitcoin ETFs alone this week.Technical charts show BTC remaining firm above $112,000.The next resistance level may be at $120,000.
Source: CoinMarketCap
If the Federal Reserve chair Jerome Powell delivers on a Fed Rate Cut, Bitcoin could benefit as investors move money out of bonds and into riskier assets. Analysts are betting that it could soar towards $200K if rate cut happens.
The broader crypto market has also increased by 1.92% with a total market cap of 4 Trillion. Ethereum and even altcoins like Dogecoin are seeing new interest due to ETF speculation and fresh inflows of stablecoins.
Gold’s Strength Amid Rate Cut Speculation
Gold is considered a safe haven by the investors seeking safety in a low-rate environment. Lower interest rates tend to boost non-yielding assets like gold.
Source: TradingView
For XAUUSD price, the 20-day EMA shows a bullish trend near $3,517, with support at $3,500 and resistance near $3,700.
Pressure on the US Dollar
The dollar index has lost strength in recent trading sessions as markets anticipate more easier policy.
A weaker dollar tends to drive commodities such as gold upwards, as well as boost Bitcoin, which is denominated in dollars.
If the Fed reduces rates, the dollar may lose further strength. That would most probably lengthen gains in gold and crypto, as well as making US exports competitively priced.
What Investors Should Watch
Markets are pricing in a 93% chance of a 25-basis-point cut and a smaller chance of a bigger 50-basis-point move. Whatever the Fed decides, the impact will ripple across gold, stocks, and crypto.
Source: FedWatch Tool
Investors are advised to monitor technical signals and liquidity flows to make informed decisions.
For now, optimism is building. If liquidity rotates as it usually does after a Fed Rate Cut, BTC and other digital assets may be the next big winners.
visit- CoinGabbar
#FedRateCut2025 #BitcoinVolatility #GoldRally #StockMarketRally #CryptoNews
All the assets are hitting All time high except BTC.
Gold is trading near a record $3,650. The S & P 500 is at $6,584.29 with an increase of 19.25%. NASDAQ is at $22,141 with a six month increase of 27.96% as per Google Finance. Bitcoin is steady around $116,000 after a two-week rebound.
Investors are now asking the same question: what happens when the Fed finally cuts rates next week?
US Economic Data Supports Rate Cut Expectations
Recent economic data gives the Federal Reserve good reason to act.
PPI: The wholesale price measure, the Producer Price Index (PPI), moderated to 2.6% in August. Core PPI, excluding food and energy, also declined relative to July.
Job Data: Unemployed claims increased to 263,000, the highest in almost four years. That indicates the labor market is softening and puts pressure on the Fed to act to ease policy.
CPI: Inflation came in mixed. Headline CPI gained 0.4% in August, above expectations, whereas core CPI continued unchanged at 0.3%.
Impact on Bitcoin and Crypto Markets
BTC has recovered, gaining around 4.7% in the week.
Whales changed positions, indicating long-term optimism.
Institutional investors (Microstrategy and Metaplanet) have been accumulating.
With $300 million coming into Bitcoin ETFs alone this week.Technical charts show BTC remaining firm above $112,000.The next resistance level may be at $120,000.
Source: CoinMarketCap
If the Federal Reserve chair Jerome Powell delivers on a Fed Rate Cut, Bitcoin could benefit as investors move money out of bonds and into riskier assets. Analysts are betting that it could soar towards $200K if rate cut happens.
The broader crypto market has also increased by 1.92% with a total market cap of 4 Trillion. Ethereum and even altcoins like Dogecoin are seeing new interest due to ETF speculation and fresh inflows of stablecoins.
Gold’s Strength Amid Rate Cut Speculation
Gold is considered a safe haven by the investors seeking safety in a low-rate environment. Lower interest rates tend to boost non-yielding assets like gold.
Source: TradingView
For XAUUSD price, the 20-day EMA shows a bullish trend near $3,517, with support at $3,500 and resistance near $3,700.
Pressure on the US Dollar
The dollar index has lost strength in recent trading sessions as markets anticipate more easier policy.
A weaker dollar tends to drive commodities such as gold upwards, as well as boost Bitcoin, which is denominated in dollars.
If the Fed reduces rates, the dollar may lose further strength. That would most probably lengthen gains in gold and crypto, as well as making US exports competitively priced.
What Investors Should Watch
Markets are pricing in a 93% chance of a 25-basis-point cut and a smaller chance of a bigger 50-basis-point move. Whatever the Fed decides, the impact will ripple across gold, stocks, and crypto.
Source: FedWatch Tool
Investors are advised to monitor technical signals and liquidity flows to make informed decisions.
For now, optimism is building. If liquidity rotates as it usually does after a Fed Rate Cut, BTC and other digital assets may be the next big winners.
visit- CoinGabbar
#FedRateCut2025 #BitcoinVolatility #GoldRally #StockMarketRally #CryptoNews
#TrumpTariffs #FedRateCut2025 Market Impact: BTC vs ETH – Why Bitcoin Led the Liquidation Wave
The crypto market went through another heavy correction recently. Prices dropped hard and liquidations surged across exchanges. Bitcoin lost around 12.7 percent, while Ethereum dropped about 14.3 percent. On the surface, it might look like Ethereum took the bigger hit, but Bitcoin actually led the liquidation wave. Out of roughly 19.1 billion dollars in liquidated positions, Bitcoin accounted for the largest share.
That might sound odd at first. If Ethereum fell more, why did Bitcoin trigger most of the liquidations? The answer comes down to market structure, Bitcoin’s dominance, and how traders use it for leverage and collateral.
Bitcoin’s Dominance Still Rules the Market
Bitcoin still controls most of the total crypto market. During this drop, Bitcoin made up more than half of all crypto market value, sitting near the mid-fifties in percentage terms. Ethereum was around the high-teens. That means more capital, more open interest, and more margin exposure are tied to Bitcoin.
Because of that, when Bitcoin’s price moves sharply, the entire market feels it. A lot of traders use Bitcoin as collateral in cross margin accounts. So when Bitcoin falls, it instantly reduces the value of the collateral that backs other leveraged positions. This triggers automatic liquidations not only in Bitcoin trades but also in positions across different pairs connected to it.
Ethereum doesn’t have that same reach. Many ETH positions are either isolated or part of DeFi platforms that have their own risk controls. So even though Ethereum’s percentage drop was bigger, the ripple effect across the wider market was smaller.
How Cross Margin Trading Made It Worse
Cross margin trading is a big part of why Bitcoin ends up leading liquidation waves. In cross margin mode, all of a trader’s balance can support open positions. When Bitcoin, which is often the collateral asset, drops in price, the trader’s total margin value drops too. This makes it much easier to hit liquidation
The crypto market went through another heavy correction recently. Prices dropped hard and liquidations surged across exchanges. Bitcoin lost around 12.7 percent, while Ethereum dropped about 14.3 percent. On the surface, it might look like Ethereum took the bigger hit, but Bitcoin actually led the liquidation wave. Out of roughly 19.1 billion dollars in liquidated positions, Bitcoin accounted for the largest share.
That might sound odd at first. If Ethereum fell more, why did Bitcoin trigger most of the liquidations? The answer comes down to market structure, Bitcoin’s dominance, and how traders use it for leverage and collateral.
Bitcoin’s Dominance Still Rules the Market
Bitcoin still controls most of the total crypto market. During this drop, Bitcoin made up more than half of all crypto market value, sitting near the mid-fifties in percentage terms. Ethereum was around the high-teens. That means more capital, more open interest, and more margin exposure are tied to Bitcoin.
Because of that, when Bitcoin’s price moves sharply, the entire market feels it. A lot of traders use Bitcoin as collateral in cross margin accounts. So when Bitcoin falls, it instantly reduces the value of the collateral that backs other leveraged positions. This triggers automatic liquidations not only in Bitcoin trades but also in positions across different pairs connected to it.
Ethereum doesn’t have that same reach. Many ETH positions are either isolated or part of DeFi platforms that have their own risk controls. So even though Ethereum’s percentage drop was bigger, the ripple effect across the wider market was smaller.
How Cross Margin Trading Made It Worse
Cross margin trading is a big part of why Bitcoin ends up leading liquidation waves. In cross margin mode, all of a trader’s balance can support open positions. When Bitcoin, which is often the collateral asset, drops in price, the trader’s total margin value drops too. This makes it much easier to hit liquidation
🚨 BREAKING: Fed Poised for First 2025 Rate Cut – Is Trump Behind the Pressure? 🚨
Markets are buzzing as the Fed prepares to slash rates—but this time, political heat from Trump may be tipping the scales. 💣📉
Is this economic strategy… or election-year power play? The stakes couldn’t be higher. 🔥
Will this move help or haunt the U.S. economy? Join the debate! 💬
#FedRateCut2025 #TrumpEffect #EconomicShockwave #Write2Earn #BinanceSquare
Markets are buzzing as the Fed prepares to slash rates—but this time, political heat from Trump may be tipping the scales. 💣📉
Is this economic strategy… or election-year power play? The stakes couldn’t be higher. 🔥
Will this move help or haunt the U.S. economy? Join the debate! 💬
#FedRateCut2025 #TrumpEffect #EconomicShockwave #Write2Earn #BinanceSquare
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