Bitcoin Trades Near $110K as Gold Hits New Highs Ahead of Fed Data
Bitcoin (BTC) hovered around $110,000 Tuesday, even as gold surged to record levels, reflecting investor caution ahead of the Federal Reserve’s next moves.
After a week of declines, crypto majors rebounded slightly. Bitcoin climbed 2.7%, while Ether (ETH) remained flat. Other tokens, including XRP ($2.80), Solana (SOL), and Dogecoin (DOGE, $0.21), rose over 3%, boosting overall crypto market capitalization by 1.8%.
Gold, in comparison, jumped to $3,508 an ounce, surpassing its April peak. The precious metal has gained more than 30% this year, outperforming Bitcoin’s 16% YTD rise, and establishing itself as the top-performing major commodity of 2025.
Traders point to Fed Chair Jerome Powell’s Jackson Hole comments, which hinted at possible rate cuts in September, alongside weaker U.S. jobs data, as key catalysts. Investors appear to be seeking shelter in hard assets amid continued uncertainty.
Nick Ruck, director at LVRG Research, noted the growing synergy between gold and Bitcoin:
“Gold is acting as a hedge against monetary debasement and equity volatility, while Bitcoin’s evolving role as an inflation hedge shows these assets are increasingly complementary rather than competitive.”
Ethereum shows signs of slowing. Daily trading volumes have fallen since July, and on-chain metrics indicate a 28% drop in active addresses. Augustine Fan, head of insights at SignalPlus, highlighted rotation within digital asset tokens (DATs), leaving major coins on the sidelines:
“The DAT premium softened toward lows, with new inflows peaking. Solana’s recent TVL rebound has allowed it to decouple from broader market weakness.”
All eyes are on Friday’s U.S. non-farm payrolls, with economists forecasting around 45,000 new jobs, private payrolls near 60,000, and the unemployment rate at 4.3%. A weaker-than-expected report could support a September rate cut and reignite risk appetite. Until then, crypto markets remain cautious, with options-based downside protection at multi-week highs.
For traders, the contrasting trends tell two stories: gold reflects defensive demand, while Bitcoin’s consolidation highlights market caution. The next few sessions will determine which asset sets the tone for crypto as September—a historically weak month—unfolds.
