Crypto markets are experiencing a turbulent phase as we approach Monday, with Bitcoin's value hovering near a staggering $115,000 and Ethereum (ETH) above $4,200. Traders are anxiously waiting to see if a potential Federal Reserve interest rate cut in September will bolster digital assets or lead to a renewed correlation with gold.

Over the weekend, market dynamics suggested that investors engaged in profit-taking, causing Bitcoin to dip by 2.4% in just 24 hours. Major altcoins like Ether experienced a significant drop of 4.4%, while Solana’s SOL and XRP both fell nearly 5%, taking the lead in losses among major cryptocurrencies.

Binance Coin (BNB) settled around $833 after a slight daily decline, while Dogecoin eased closer to 22 cents and Cardano (ADA) remained near 91 cents as sellers pressured liquidity.

The weekend saw investors reluctant to make moves as they awaited the opening of U.S. equity markets, anticipating that cryptocurrencies would closely mirror stock indices amid a lack of fresh macroeconomic signals. Still, the impending Federal Reserve meeting in September looms large, with expectations of a rate cut now fully factored into both bond and futures markets.

Nick Ruck, the director at LVRG Research, emphasized that Bitcoin's status as 'digital gold' could resurface if monetary easing comes into effect. "The Fed's possible rate cuts might rejuvenate Bitcoin's connection to gold as a liquidity-driven hedge, yet we are seeing gold flourish due to central bank demand while BTC remains linked to risk-on sentiment," Ruck pointed out.

He noted that historically, during times of monetary easing, both Bitcoin and gold have tended to converge. However, gold’s recent record highs amid geopolitical tensions underscore its lasting reputation as a safe haven, whereas Bitcoin's trajectory heavily relies on institutional adoption and clarity in Fed policy.

In an interesting twist, gold has skyrocketed to all-time highs, driven by unprecedented central bank buying and geopolitical hedging, while Bitcoin has been knocked off its usual equity-linked path.

Looking ahead, market insiders expect clarity in the coming weeks. Jeff Mei, COO at BTSE, stated, "With the markets remaining relatively stagnant over the weekend, we anticipate cryptocurrencies to closely track stocks once the U.S. market reopens today."

Mei also expressed caution regarding market reactions this week due to a lack of major economic indicators, though he highlighted several retail giants, including Wal-Mart, Lowe's, and Target, set to announce earnings soon. Their performance and outlook could signal how tariffs and inflation are impacting the broader business landscape, adding intrigue to market dynamics.

As it stands, cryptocurrency seems tethered to equities for the moment, but September is shaping up to be a pivotal month. It may determine whether Bitcoin can reclaim its role as a safe-haven asset alongside gold or whether it will continue to ride the waves of liquidity amongst risk assets.