Bitcoin Rebounds as Gold Surges Amid Rate-Cut Hopes and Market Volatility

Bitcoin (BTC) regained momentum on Wednesday, rebounding from a sharp dip to $120,000 and trading around $123,500 — up 1.5% over the past 24 hours. The world’s largest cryptocurrency continues to show resilience despite market turbulence and shifting macroeconomic sentiment. Altcoins followed BTC’s upward move, though most have yet to recover early-week highs. Ethereum (ETH) climbed to $4,511, while Ripple’s XRP reached $2.90. Solana (SOL) traded at $228, Dogecoin (DOGE) at $0.25, and Avalanche (AVAX) at $28.98, with gains between 1% and 3%. The CoinDesk 20 Index, tracking leading digital assets, rose 2%.

Crypto-related equities also rallied. Bitcoin mining firms tied to high-performance computing infrastructure led the surge, with Cipher Mining (CIFR) and Bitfarms (BITF) soaring 11%–12%, and CleanSpark (CLSK) and Hut 8 (HUT) gaining around 6%. Analysts attribute this strength to optimism over growing AI-driven demand for computational power that could benefit crypto miners.

Minutes from the U.S. Federal Reserve’s September meeting revealed that most officials still anticipate rate cuts later in the year, although a few cautioned against premature easing amid persistent inflation risks. This mixed sentiment has contributed to volatility across both traditional and digital markets.

Meanwhile, gold continues to dominate the “debasement trade,” soaring past $4,000 and up 50% year-to-date. Investors are turning to gold amid rising deficits, shaky bond markets, and expectations of looser monetary policy. Charlie Morris of ByteTree noted that gold’s rally reflects macroeconomic fundamentals rather than speculation. He suggested that Bitcoin may soon follow, benefiting as gold’s momentum cools.

Matthew Sigel of VanEck reiterated that Bitcoin could eventually capture half of gold’s market capitalization, implying a potential long-term BTC price target of $644,000. As gold shines in the short term, Bitcoin may soon reclaim its role as the digital alternative for investors seeking a hedge against inflation and monetary debasement.