Fed Cut Bets Lift Gold to $3,508 and Bitcoin Tops $110K
Gold surged to a record $3,508 in Asian trade and Bitcoin climbed above $110,000 as markets ramp up expectations of a September Fed rate cut. FedWatch Tool shows nearly 90% probability of a 25-basis-point reduction at the September 17 meeting, igniting a broader crypto rally. Ethereum regained $4,400, Solana edged past $200 and total crypto market cap rose to $3.9 trillion.
Analyst MacroScope highlights gold’s breakout as a bullish macro indicator for Bitcoin, noting a past pattern where BTC briefly retraced before rallying to new highs. The firm warns of a short-term dip ahead of a potential long-term surge.
Investors now focus on upcoming US data, including the August jobs report and September 11 inflation figures, which will help confirm rate-cut timing. Ongoing Fed governance updates, such as the Senate hearing for Stephen Miran and the Lisa Cook case, also warrant attention.
Bullish
The prospect of a Fed rate cut has historically triggered rallies in both gold and risk assets like Bitcoin. With the FedWatch Tool assigning nearly a 90% chance of a September reduction, traders have increased long positions, driving gold to a record high and Bitcoin above $110K. Analyst MacroScope’s comparison to April’s market cycle—where gold’s rally preceded a Bitcoin retracement and subsequent all-time highs—underscores a bullish bias over the medium term. While a short-term pullback is possible as traders lock in gains, the broader trend remains upwards as investors await key US jobs and inflation data to validate rate-cut timing. This alignment of macro drivers and technical signals supports continued upside for major digital assets.