Bitcoin around $112,000 despite rising U.S. rate cut bets

The world’s biggest cryptocurrency was last up nearly 1% at $112,200

Bitcoin was slightly up above $112,000 on Monday in choppy trading, as crypto markets showed little reaction to rising odds of a U.S. central bank rate cut next week.

The world’s biggest cryptocurrency was last up nearly 1% at $112,200 as of 13:31 GMT.

Bitcoin declined more than 6% last month, erasing gains after reaching record highs above $124,000 in mid-August.

The subdued moves come despite escalating market expectations that the bank will deliver at least a 25-basis-point rate cut at its September 17 meeting, with some analysts suggesting as much as 50 basis points.

The latest U.S. jobs report on Friday showed a sharp slowdown in employment growth and a rise in the unemployment rate to 4.3% in August, bolstering sentiment around rate cuts.

Global markets broadly responded to the growing rate-cut optimism. Equities gained momentum, Treasury yields eased to near five-month lows, and gold remained elevated.

Nevertheless, political developments in Japan and France injected an element of caution into risk sentiment.

Macro liquidity conditions, encouraged by the prospect of easier monetary policy, ideally provide support to risk assets like cryptocurrencies.

Still, investors remain vigilant, awaiting key inflation readings—particularly upcoming U.S. CPI and PPI reports—that could further influence the central bank’s decision.

On the corporate front, Japanese hotelier Metaplanet Inc on Monday disclosed a purchase of 136 Bitcoin, spending approximately $15.2 million at an average of $111,783 per coin, bringing its total holdings to 20,136 BTC.

This makes it one of the most significant corporate holders of the digital asset, although its share price dropped amid broader investor skepticism of such treasury strategies.