Hold onto your hats, crypto enthusiasts! Things have been heating up in the market, and it’s all thanks to a little nudge from the U.S. Federal Reserve. For the first time in nearly four years, they slashed interest rates on Wednesday, sparking a much-needed revival in the crypto world.
The big shots of the crypto scene, Bitcoin and Ethereum, have been on an exhilarating ride, each gaining around 10% in just a few days. Talk about a comeback!
Bitcoin ETFs have been the talk of the town since they hit the trading floors in January. These financial instruments have had their fair share of ups and downs, even pushing Bitcoin to a new all-time high just two months after their debut. Investors' moods sway with the tides of economic news, and this week’s Federal Reserve meeting was no exception.
With this being the first rate cut since 2020 and the first since Bitcoin ETFs were introduced, all eyes were on how investors would react. In the days leading up to the meeting, U.S. investors poured over $500 million into these ETFs, but come Wednesday, they took out $52.7 million.
But wait, the plot thickens! By Thursday, the first full trading day post-rate cut, the mood flipped again. Investors poured back in, adding a whopping $158.3 million in net inflows. Ark Invest’s ARKB led with $81.1 million, followed by Fidelity’s FBTC with nearly $50 million. Interestingly, BlackRock’s IBIT didn’t see any action.
As a result, Bitcoin’s price shot up from $59,000 on the rate-cut day to just over $64,000 before settling slightly at $63,400. What a ride!
Now, let’s talk about Ethereum ETFs. They’ve had a rocky start since their late July launch, struggling to attract much attention. Investors pulled out $9.4 million on Monday, $15.1 million on Tuesday, and another $9.8 million on Wednesday.
But, lo and behold, things turned around for Ethereum ETFs as well. On Thursday, they saw net inflows of $5.2 million, all going into BlackRock’s ETHA. The other ETFs? Crickets.
Ethereum’s price also got a boost, jumping from $2,300 during the FOMC meeting to nearly $2,575 earlier today. That’s a 12% surge, folks!
So, there you have it. The crypto market’s alive and kicking, with Bitcoin and Ethereum leading the charge. Keep your eyes peeled; you never know what’s next in this thrilling crypto saga!
