Bitcoin rose on Tuesday, recouping a small measure of recent losses on growing bets that U.S. interest rate cuts were imminent, although emerging doubts over a corporate treasury strategy kept gains limited and traders cautious.
Broader crypto prices gained some ground after logging steep losses in the beginning of September, although they largely lagged a rally seen in equities and gold. Crypto also appeared to be seeing little benefit from improving risk appetite, as markets bet on a September rate cut by the Federal Reserve.
Bitcoin rose 0.8% to $111,812.8 by 00:51 ET (04:51 GMT). The world’s biggest crypto briefly rose above $112,000.
Bitcoin stalls amid crypto stock rout Emerging doubts over the long-term returns on corporate Bitcoin buying crept into markets in recent weeks, especially following Bitcoin’s tumble from mid-August record highs.
Crypto markets showed middling reactions to the purchases of more Bitcoin by top corporate holders, including Strategy (formerly MicroStrategy (NASDAQ:MSTR)), and Metaplanet Inc (TYO:3350). Shares of the two also fell in recent sessions, headlining a broader decline in crypto-linked stocks.
The Bitcoin-buying strategy, successfully executed by Strategy over the past two years, makes a company’s shares much more vulnerable to swings in crypto prices. Critics were also seen questioning the long-term return potential of the strategy, given that it hinges entirely on Bitcoin’s price going higher, and could become diluted by more entrants to the sector. Retail and institutional investors seeking equity exposure to Bitcoin can also just purchase spot exchange-traded funds, which were launched in U.S. markets last year.
Stablecoin operator Circle Internet Group Inc (NYSE:CRCL) slid to a near three-month low on Monday after Compass Point Research slashed the company’s price target and maintained its Sell rating. This was in face of heightened competition from decentralized exchange Hyperliquid’s announcement that it will launch its own stablecoin, USDH, to compete with USDC.
Hyperliquid holds about $5.4 billion in USDC deposits which it is now expected to convert into USDH. The figure represents about 8% of total USDC supply.
Crypto price today: altcoins gain some ground Broader crypto prices advanced on Tuesday after logging steep losses through late-August and early-September, although most of them remained rangebound.
World no.2 crypto Ether rose 0.4% to $4,314.06, while XRP rose 3.4% to $2.9627.
Solana rose 3.7%, while Cardano rose 3.4%.
Among meme tokens, Dogecoin rose 2.1%, while $TRUMP rose 1.7%.
Crypto prices took some relief amid growing bets that the Federal Reserve will cut interest rates next week. Markets were pricing in a 90.1% chance for a 25 basis point cut during the Fed’s September 16-17 meeting, and a 9.9% chance for a 50 bps cut, CME Fedwatch showed.
Bets on rate cuts were driven chiefly by growing signs of a slowdown in the U.S. labor space.
