Bitcoin Climbs to $111.5K as Altcoins Struggle Ahead of Payroll Report

• Bitcoin rises 0.8% to $111,537 amid anticipation of September Fed rate cut.

• Fed officials signal labor weakness; nonfarm payrolls expected to support September rate cut.

• Fed futures show 96% chance of 25bps cut; Bitcoin up 2.6%, Ether down 0.6%.

Bitcoin saw a modest rise on Friday, buoyed by gains across risk-sensitive markets as investors awaited the release of U.S. nonfarm payrolls data. This data is expected to solidify market expectations for an interest rate reduction by the Federal Reserve in September. After recovering from significant losses throughout most of August, Bitcoin recorded a 0.8% increase, reaching $111,537.3 by 01:35 ET (05:35 GMT). Despite a general upswing in risk assets, most cryptocurrencies remained subdued this week.

Several Federal Reserve officials recently indicated that ongoing labor market softness may prompt the central bank to ease monetary policy. These remarks aligned with comments made by Fed Chair Jerome Powell last month. Additional labor reports this week, including job openings and unemployment claims, came in below expectations, reinforcing speculation about a September rate cut. The upcoming nonfarm payrolls data, due at 08:30 ET (12:30 GMT), is forecasted to reflect sluggish employment growth for August, further supporting the case for easing.

Market expectations, as shown by Fed fund futures, indicate more than a 96% probability of a 25 basis-point rate reduction during the Fed’s September 16-17 meeting, per CME FedWatch. Lower interest rates typically enhance liquidity and create favorable conditions for speculative assets like cryptocurrencies.

Bitcoin rebounded 2.6% over the past week but remained rangebound overall, partly supported by increased institutional purchases and anticipated regulatory improvements in the U.S. Meanwhile, altcoins showed limited movement: Ether decreased 0.6% to $4,338.67, Solana declined 0.9%, $TRUMP gained 0.6%.