All eyes are on the Federal Reserve, and the interest rate cut in September may boost Bitcoin.
Thanks to the "timely" interest rate cut by the Federal Reserve, market risk appetite has rebounded and the demand for Bitcoin ETF has recovered. $Bitcoin (BTC.CC)$ Reaching $65,000 for the first time in about three weeks.
On Monday, the price of Bitcoin rose by 1.2% to reach $65,030, then fell back to $63,710 at 13:35. Last week, Bitcoin rose by 7.6BJ%, the largest weekly increase since mid-July.
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Federal Reserve Chairman Jerome Powell gave the clearest signal yet of an interest rate cut last Friday, and the market has fully digested the possibility of a rate cut in September, greatly increasing the liquidity of global financial assets.
This signal has led to a net inflow of $0.252 billion, which has flowed into more than a dozen US spot Bitcoin ETFs, attracting consecutive inflows for seven days. This is the highest level in months.
"All eyes are on the Federal Reserve," said Cici Lu McCalman, founder of blockchain consulting firm Venn Link Partners, who believes that the interest rate cut in September may boost Bitcoin.
Unlike the bitcoin portfolio, last Thursday, the 9 ETFs holding ethereum experienced outflows for the sixth consecutive day, with a net outflow of 1 million USD. Stephane Ouellette, Co-founder of FRNT Financial, stated:ethereumStephane Ouellette, Co-founder of FRNT Financial, stated:
"I don't think it's surprising that ETF investors are reducing their bitcoin exposure ahead of the Jackson Hole meeting to lower their risk, as they are far less familiar with cryptocurrencies than native cryptocurrency investors and act cautiously when interest rate expectations are adjusted."
It is important to note that regardless of how much capital is withdrawn from the Ethereum spot ETF, it represents a relatively small portion of the market, accounting for about 2% of Ethereum's market cap."
Editor/Somer