TLDR
- Bitcoin trading around $110,000 after nearly 10% drop from August all-time high of $123,731
- Gold reached record $3,508 per ounce, outperforming Bitcoin with 30% YTD gains versus BTC’s 16%
- September historically weak month for Bitcoin with previous negative performance in multiple years
- ETF outflows totaled $751.12 million in August, ending four-month streak of inflows
- Traders watching Friday’s non-farm payrolls report for signs of Fed rate cuts
Bitcoin is trading around the $110,000 mark as September begins, following a significant pullback from its all-time high reached last month. The leading cryptocurrency peaked at $123,731 on August 14 before shedding nearly 10% of its value in the weeks that followed.
The digital asset rose 2.7% on Tuesday morning while gold surged to a record high of $3,508 per ounce. This divergence highlights different hedging strategies as traders position themselves ahead of potential Federal Reserve rate cuts.
Gold has become the best-performing major commodity in 2025, with year-to-date gains exceeding 30%. This impressive performance contrasts with Bitcoin’s more modest 16% increase during the same period.
Other cryptocurrencies showed mixed performance. Ethereum remained flat while XRP, Solana’s SOL, and Dogecoin each added more than 3%. The overall crypto market capitalization rose 1.8%.
Traders point to Federal Reserve Chair Jerome Powell’s recent comments at Jackson Hole as a catalyst for market movements. Powell’s remarks opened the door to potential rate cuts in September.
A weakening U.S. jobs market has strengthened the case for monetary easing. This economic backdrop has investors seeking protection in hard assets like gold and cryptocurrency.
September Outlook Concerning
September has historically been one of Bitcoin’s weakest months. Data shows the cryptocurrency has recorded negative returns in September multiple times, including an 8% drop in 2020, a 7.3% decline in 2021, and a 3.10% dip in 2022.
While Bitcoin managed modest gains in September 2023 and 2024 (4% and 7% respectively), market conditions suggest this month could see a return to the downward trend.
The outlook appears increasingly bearish due to a combination of waning institutional demand and growing negative market sentiment.
ETF Flows Turn Negative
August was marked by declining capital inflows into Bitcoin-backed exchange-traded funds (ETFs). According to SosoValue, outflows from these investment products totaled $751.12 million during the 31-day period.
This development ended a four-month streak of steady inflows that had supported Bitcoin’s rise earlier in the year.
The reversal is particularly concerning because Bitcoin’s push to new record highs has been closely tied to institutional inflows since the approval and launch of spot Bitcoin ETFs.
Without consistent backing from large-scale ETF demand, the market may struggle to maintain upward momentum. This leaves Bitcoin vulnerable to sharper corrections if retail buyers cannot fill the gap left by institutional investors.
Market analysts see the parallel movements in gold and Bitcoin as signaling a broader shift in hedging behavior.
Nick Ruck, director at LVRG Research, told CoinDesk: “Gold’s surge reflects a structural shift where it acts as a hedge against monetary debasement and equity volatility. Bitcoin’s evolving role as an inflation hedge suggests these assets are increasingly complementary rather than competitive.”
Meanwhile, Ethereum is showing signs of fatigue despite broader institutional adoption narratives. Daily volumes have slowed from July peaks, with on-chain metrics showing a 28% drop in active addresses since late July.
Traders are now focusing on Friday’s non-farm payrolls report. Economists expect around 45,000 new jobs, with private payrolls closer to 60,000 and the unemployment rate potentially rising to 4.3%.
A softer-than-expected jobs report could cement expectations for a September rate cut, which might revive risk appetite in the crypto market.
Until then, crypto markets continue to trade with caution. Options markets show downside protection at the highest levels in weeks, reflecting growing uncertainty.
For Bitcoin traders, the setup is becoming clearer. While gold’s strength tells one story, Bitcoin’s recent performance tells another. The next few trading sessions will likely determine which asset defines market sentiment heading into what has historically been the weakest month of the year for cryptocurrency.
The post Bitcoin (BTC) Price: Hovering Around $110,000 While Gold Reaches New Record High appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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