Declining Trend for Solana and XRP Amid Profit-Taking; Bitcoin Traders Focus on Gold Movements

What You Should Know:

Bitcoin and Ether maintained a steady state as traders look forward to a potential interest rate reduction by the Federal Reserve in September.
Recent trading days have experienced profit-taking, resulting in declines for significant cryptocurrencies, including Bitcoin and Ether.
The cryptocurrency market remains closely correlated with stock indices, and upcoming retail earnings reports may sway market dynamics.

Weekend Market Highlights

Crypto markets moved sideways leading into Monday, with Bitcoin lingering near $115,000 and Ether staying above $4,200. Traders are curious whether a forthcoming Fed rate cut will enhance digital assets’ upward momentum or align them closer to traditional safe havens like gold.

This weekend indicated profit-taking across major assets. Bitcoin experienced a slight drop of 2.4% over 24 hours, while Ether fell by 4.4%. Notably, Solana’s SOL and XRP witnessed around 5% declines, leading the losses among major cryptocurrencies.

BNB remained around $833 after a minor daily drop. Dogecoin edged lower towards 22 cents, while Cardano’s ADA hovered close to 91 cents even as liquidity pressures from sellers became evident.

Market participants are focused on the impending U.S. equity markets opening, anticipating that cryptocurrencies will reflect stock performance due to the lack of fresh macroeconomic signals.

Nick Ruck, LVRG Research Director, remarked that Bitcoin could regain its designation as ‘digital gold’ under monetary easing conditions. He stated:

“The Fed’s potential rate cuts in September could reinvigorate Bitcoin’s linkage to gold as a liquidity-driven hedge. The recent disconnect indicates gold’s resilience due to central bank demand, while BTC persists on a risk-on narrative.”

Ruck added:

“Historically, both assets tend to converge during periods of monetary easing. However, gold’s recent peaks amidst geopolitical strains emphasize its status as a safe haven, while Bitcoin’s narrative depends on institutional acceptance and clarity in Fed policies.”

As gold challenges all-time highs driven by record central bank purchases, Bitcoin’s trajectory remains equity-linked, waiting to see if September will yield a return to its historic trade character alongside traditional safe havens.