Bitcoin soared to $65,000 for the first time in nearly three weeks, driven by renewed interest in U.S. exchange-traded funds (ETFs) and expectations that the Federal Reserve may ease its monetary policy.
On Monday, Bitcoin climbed 1.2% to reach $65,030 before settling at $63,780 by 9:19 a.m. New York time. The cryptocurrency saw a notable 7.4% increase last week, marking its most significant rise since mid-July.
Federal Reserve Chair Jerome Powell hinted on Friday that the central bank might lower benchmark interest rates, which could lead to improved market liquidity. This announcement led to a significant $252 million net inflow into a dozen U.S. spot-Bitcoin ETFs on the same day, the highest in over a month. These ETFs have now seen seven consecutive days of inflows. In contrast, Ether investment products experienced $36 million in net outflows last week, according to CoinShares.
“All eyes are on the Fed,” said Cici Lu McCalman, founder of blockchain advisory firm Venn Link Partners. She suggested that a potential rate cut in September could further boost Bitcoin’s value.
While Bitcoin portfolios are thriving, U.S. spot-Ether ETFs faced a net outflow on August 23. Ether itself fell by as much as 2.1% on Monday, and other major cryptocurrencies showed minimal movement.
Toncoin, a cryptocurrency associated with the Telegram messaging app, struggled as Telegram’s co-founder Pavel Durov faced detention in France.
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