Bitcoin holds unsteady around $112K as Fed rate-cut hopes grow

Bitcoin is currently trading around the $112,000 mark, with investors showing caution ahead of the US Federal Reserve’s next policy move.

On Monday, the world’s biggest cryptocurrency saw a small rise but quickly slipped back down. For the past few weeks, Bitcoin has struggled to gain strong upward momentum, reflecting uncertainty in the wider crypto market.

The main focus right now is the Federal Reserve’s September 17 meeting. Many expect a 25 basis points rate cut, while some believe the Fed might go further with a 50 basis points cut. Recent weak jobs data and comments from Fed Chair Jerome Powell have increased expectations of easier monetary policy.

Generally, lower interest rates support riskier assets like Bitcoin, but this time, traditional markets such as stocks and gold have reacted more strongly.

Even with slower retail activity, institutional demand remains strong. Spot Bitcoin ETFs are still seeing steady inflows, and big purchases, like Metaplanet buying more than 1,000 BTC, show that corporate interest is holding firm. This institutional support has helped keep Bitcoin’s price stable despite market uncertainty.

Looking forward, traders are waiting for key US data releases, including inflation (CPI, PPI) and jobs reports, which could influence the Fed’s decision and Bitcoin’s next big move.

As the crypto market matures, Bitcoin’s future may depend less on headlines and more on how investors interpret economic signals.

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