Bitcoin benefits from weaker dollar and rate cut signals amid market volatility

In August 2024, crypto markets faced volatility, with Bitcoin outperforming and Ethereum underperforming, according to the Grayscale report. U.S. Fed Chair Jerome Powell signaled upcoming rate cuts, which could benefit Bitcoin as a competitor to the U.S. Dollar. Ethereum's uncertain scaling strategy and speculative positioning contributed to its decline. Meanwhile, stablecoins gained momentum, and privacy-focused crypto assets like ZCash saw brief gains. Grayscale believes Bitcoin's fundamentals may improve if the U.S. labor market holds steady, with potential upside from rate cuts later this year. Key risks include rising unemployment and recession concerns.