Market Digest: Bitcoin Dips to 110K as Fed Cut Bets Build Despite Trump–Russia Clash

Key takeaways

Markets showed resilience as optimism over imminent U.S. rate cuts outweighed geopolitical tensions.
President Trump pressed Europe to halt Russian oil purchases while Macron rallied allies for long-term Ukraine security commitments.
Fed officials reinforced expectations of near-term easing, with traders showing full certainty of a September cut.
Bitcoin slipped toward $110K while gold stayed steady, reflecting investor focus on rate relief over safe-haven demand.

Geopolitics & Market Sentiment

On September 5, 2025, markets showed resilience as optimism over imminent U.S. rate cuts outweighed geopolitical friction stemming from President Donald Trump’s renewed pressure on Europe to halt Russian oil purchases.

On the diplomatic front, Trump pushed aggressively in a call with European leaders and Ukrainian President Volodymyr Zelenskiy, demanding that Europe stop financing Russia’s war through oil imports and urging coordinated pressure on China. The intervention came as French President Emmanuel Macron announced that 26 nations promised security support for Kyiv after the end of the war, including an international force across land, sea, and air.

While these commitments offer a measure of reassurance, the path to direct peace talks remains out of reach. President Trump told CBS News he remains committed to pursuing a peace agreement but added that “they are not ready yet,” highlighting the gap between pledges of long-term security and the near-term achievements.

Russia, for its part, has dismissed the Paris summit’s guarantees as “meaningless,” with the Kremlin insisting that Western military backing only hardens its stance against negotiations.

On the economic front, U.S. Federal Reserve officials signaled policy flexibility but reinforced expectations of a near-term rate cut. New York Fed President John Williams said gradual easing would be appropriate if inflation softens as forecast, while weekly jobless claims and subdued payroll data strengthened the case for lowering borrowing costs. Traders now expect a near-100% chance of a September cut.

Meanwhile, President Trump’s persistent clashes with the Fed, including his attempts to reshuffle its leadership, have heightened investor concerns about institutional independence, though markets for now remain focused on the the chance of rate cuts ahead.

Bond yields eased as investors bet on rate relief, while the dollar firmed modestly ahead of Friday’s monthly jobs report.

Oil prices weakened sharply after reports that OPEC+ may increase output targets, with Brent crude sliding nearly 4%. Meanwhile, gold and silver held steady, as investors showed less urgency for safe havens amid equities’ rise.

In Crypto, major tokens pulled back, with Bitcoin slipping to around $110,500, Ethereum falling below $4,350, and Solana sliding over 3% to near $204. Meanwhile, Bitcoin dominance inched higher toward 59%, signaling a modest rotation back into the leading token even as altcoins extended losses.