Solana and XRP Drop 5% Amid Profit-Taking; Bitcoin Eyes Gold
Cryptocurrency markets saw broad profit-taking over the weekend, with Solana (SOL) and XRP slipping around 5%, Ether shedding 4%, and Bitcoin (BTC) hovering near $115,000 amid mixed trading. Traders are weighing the impact of a potential Federal Reserve rate cut in September, which could either rekindle Bitcoin’s role as a “digital gold” hedge alongside bullion or maintain its risk-on correlation with equities. LVRG Research’s Nick Ruck noted that easing monetary policy historically aligns Bitcoin with gold, but recent trends have linked BTC more to stock performance. Meanwhile, gold has hit record highs on central bank purchases and geopolitical tensions. Market participants expect U.S. retail earnings and broader equity moves to guide crypto’s short-term direction. With rate cut expectations priced into bond markets, the crypto market remains sensitive to macro signals, keeping profit-taking pressure and potential gold divergence in focus for traders.
Neutral
This article describes a weekend profit-taking episode that saw altcoins like SOL and XRP drop 5%, while Bitcoin remained near $115,000. The market is in a wait-and-see mode ahead of a potential Fed rate cut, with traders weighing Bitcoin’s risk-on behavior against its potential as a ‘digital gold’ hedge. Similar profit-taking events in crypto history often lead to short-term volatility but consolidate around key levels, especially when macro catalysts are uncertain. The absence of immediate macro data and the reliance on upcoming equity earnings suggests that crypto may trade sideways in the short term. In the long run, clarity on Fed policy and gold’s safe-haven status could drive Bitcoin’s divergence or correlation with equities, making this news neutral for market direction.