By Adam Clark

Bitcoin and other major cryptocurrencies were gaining on Monday as traders assess the likely path for the Federal Reserve.

Bitcoin was up 0.8% over the past 24 hours to around $112,140 early on Monday. The world's largest cryptocurrency hit a new high of more than $124,000 last month amid optimism over interest-rate cuts. While prices have fallen back since then, last week's weak jobs report has traders increasingly confident in future rate reductions.

"At present levels, the next leg for price will hinge primarily on the U.S. monetary policy pivot and the durability of flows into spot Bitcoin ETFs [exchange-traded funds]," wrote Linh Tran, an analyst at trading platform XS.com.

Lower rates make risky assets such as stocks and digital assets more attractive relative to interest-bearing investments such as bonds. Reduced rates also tend to weaken the dollar, which boosts crypto valuations.

Several large altcoins were rising. Ethereum gained 0.6%, XRP rose 4.1% and Solana was up 3%. Dogecoin, which is a memecoin, was gaining 7.4%.

Among crypto-related stocks, Strategy, formerly known as MicroStrategy, was down 2% in premarket trading. The significant Bitcoin holder was not chosen to join the S&P 500 index despite being ranked second by market cap among eligible candidates.

The most likely drivers for crypto prices this week will be inflation and jobs data, which will be watched for their effects on the Federal Reserve's rate-cutting path.

"Investor reactions to upcoming inflation data, moves in the dollar and yields, and the pace of ETF flows will determine whether Bitcoin breaks out of its current sideways phase into a new uptrend," wrote Tran.

Write to Adam Clark at adam.clark@barrons.com

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September 08, 2025 07:41 ET (11:41 GMT)

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