Market News

FED’s Potential Rate Cut Sparks Bullish Momentum for Bitcoin and Ethereum

Recent market developments reveal increased optimism surrounding Bitcoin and Ethereum as the Federal Reserve prepares for a likely rate cut next week.

On September 11, Bitcoin ETFs experienced a striking inflow of approximately $553 million, contributing to a total of $1.7 billion over four days.

This surge comes in stark contrast to earlier September trends, where funds had recorded their first weekly outflows since June.

Ethereum also showed promising recovery, with its ETFs attracting around $113 million on the same day.

Market analysts suggest that current economic conditions, including weak labor data and declining inflation, have fueled expectations for a 25-basis-point interest rate cut by the Fed.

Both cryptocurrencies are nearing their previous all-time highs, with Bitcoin briefly surpassing $116,000 recently.

Coinbase co-founders predict that Bitcoin, Ethereum, and Solana may all reach new all-time highs within the next month, reflecting enhanced institutional interest.

Nonetheless, options data indicates some bearish sentiment, as seen in the higher put-to-call ratios for Bitcoin and Ethereum ahead of upcoming expirations.

Despite these mixed signals, the overarching narrative remains bullish as traders prepare for potential market volatility following the Fed’s decision.

As the crypto market continues to evolve, the interplay between regulatory developments and institutional capital flows will be crucial in shaping future price trajectories.