Crypto Market Watch: BTC, ETH stay volatile ahead of Fed’s interest rate update

The crypto market reflected a slow momentum on Friday, September 5 ahead of the Fed’s update on the interest rate decision. Bitcoin, in the last 24 hours, rose by 1.03 percent. At the time of writing, the asset was trading at $111,590, data by CoinMarketCap showed. This is the first time this week so far that BTC has managed to breach the mark of $111,500.

“Bitcoin is consolidating in the $107,000–$113,000 range following weaker-than-expected U.S. labor market data, as traders await a clearer directional signal. With the Federal Reserve’s September 16–17 meeting on the horizon, attention is firmly on interest rates. The coming weeks are likely to be pivotal,” Edul Patel, the CEO of Mudrex crypto exchange told CoinHeadlines.

If Bitcoin manages to break above the $112,000 mark, it could regain an upward momentum. On the downside, analysts said, the asset could drop below $100,000 and more critically $92,000 if volatility continues to persist.

Ether has been stagnated at the $4,300 mark throughout this week. The asset reflected a loss of under one percent over the last day to retail at $4,335 on Friday, as per CoinMarketCap. In the last seven days, ETH has clocked a drop of $3.06 percent — indicating at the ongoing consolidation.

“Market participants must manage risk carefully but stay alert for policy driven opportunities. If fed signal signals turn dovish, selective conviction could steer the next meaningful and reprice long term momentum swiftly,” said Avinash Shekhar, the CEO of the Pi42 exchange told, speaking to CoinHeadlines. “Robust ETF flows have softened typical September weakness and helped buffer price action. The tug between treasury holders and ETF demand are adding complexity to direction.”

BTC and ETH are influential assets that set the tone for the overall price chart. Owing to their ongoing volatile phases, the altcoin index is also showing a mixed sentiment. A majority assets are constantly fluctuating — failing to grab a definitive price point.

Over the last week, Ripple along with Binance Coin, Dogecoin, Tron, and Cardano registered losses of around three percent. For some tokens like Solana, Chainlink, and Cronos however, the weekly losses have been even bigger ranging between three percent to 12 percent.

“The next leg of the market now hinges on the Fed rate cut expectations rather than ideology. Robust ETF flows have softened typical September weakness and helped buffer price action. The tug between treasury holders and ETF demand are adding complexity to direction. XRP has hit resistance and Solana is slipping on short term pressure,” Shekhar added.

As per a Reuters report, the Fed is expected to announce a cut in the interest rates by a quarter of a percentage point from the current 4.25 percent-4.50 percent range.

For now, the crypto market is estimated to remain sluggish. In the last 24 hours, the market cap of the sector rose by 0.37 percent, hitting the valuation of $3.83 trillion.