Solana and XRP Drop 5% as Bitcoin Traders Monitor Gold Correlation
Crypto markets showed limited movement on Monday, with Bitcoin around $115,000 and Ether above $4,200. Traders are assessing the impact of a potential Fed rate cut in September on digital assets.
- Bitcoin fell 2.4% in 24 hours.
- Ether decreased by 4.4%.
- Solana and XRP dropped nearly 5%.
- BNB remained near $833; Dogecoin approached 22 cents; Cardano held at 91 cents.
Investors appear cautious, awaiting U.S. equities market opening amid expectations that crypto will align with stock indices due to a lack of new macro signals. Rate cut expectations are deeply embedded in bond and futures markets.
Nick Ruck from LVRG Research highlighted that Bitcoin's status as "digital gold" may resurface if monetary easing occurs. He indicated a historical convergence between Bitcoin and gold during such periods, although recent trends show gold thriving independently while Bitcoin’s performance is tied to risk sentiment.
Gold has reached all-time highs driven by central bank purchasing and geopolitical concerns, diverging from Bitcoin's equity correlation.
Market analysts suggest upcoming retail earnings reports from companies like Wal-Mart, Lowe's, and Target could influence market reactions, particularly regarding economic impacts from tariffs and inflation.
The current landscape positions crypto alongside equities short-term, with September potentially determining Bitcoin's future as a safe-haven asset or its continuation in a liquidity-driven cycle.