The recent FED meeting was good for cryptocurrency as investors have been increasingly purchasing Bitcoin-related exchange-traded products (ETP) amid concerns over potentially looming interest rate cuts in September. Digital asset investment products saw weekly inflows worth $533 million from Aug. 18 to Aug. 24. Last week’s purchasing pace of crypto-related ETFs marked the largest inflows in the past five weeks. $BTC saw a jump pushing prices back over the $63k mark.
The rise in price comes in anticipation of interest rate cuts in which are suggested tp occur in September 2024. Right now, most experts envision three quarter-point Fed cuts. It's looking like we will get them in September, November and December. The declining rate will eventually mean better rates for borrowers, many of whom are facing some of the highest credit card interest rates in decades. It will also move people from bonds which will mean money will flow into other investment products. Bitcoin is the posed to be winner with already $543 million of inflows
Among various crypto investment products.
Just look at BlackRock's iShares Bitcoin Trust (IBIT), which recorded $318 million in inflows last week.
However, not all products are made equal with $36 million in outflows in Ethereum. There was some buying and $ETH prices were still pretty good.
However, it should be noted that the Grayscale Ethereum Trust (ETHE) saw about $118 million of outflows. I don't want to be all doom and gloom for ETH since the new Ethereum ETFs have seen $3.1 billion of inflows since launching on July 23.
I think this is something to be excited about, but while the inflows have been good for the last few weeks they were and are far from beating historical records. I want to get excited for a surging bull market moon shot, but I have been disappointed too many times. I just hope we get some good action in $HIVE and $LEO prices since they have been beaten down lately and I have had a chance to pick up some more of each!