Unlike Bitcoin portfolios, a group of U.S. Ether spot ETFs suffered a net outflow on Aug. 23. | Photo: Bloomberg
Bitcoin touched $65,000 for the first time in about three weeks, helped by a revival in demand for U.S. exchange-traded funds amid signs the Federal Reserve is willing to ease monetary policy.
The largest digital asset rose as much as 1.2% to $65,030 on Monday before retreating to $63,780 as of 9:19 a.m. in New York. The cryptocurrency advanced 7.4% last week, the steepest increase for a similar period since mid-July.
Federal Reserve Chairman Jerome Powell on Friday gave the clearest indication yet that the central bank is on track to cut benchmark rates from a more than two-decade high, heralding a more favorable liquidity backdrop for global markets.
Powell’s signal prompted a net inflow of $252 million — the most in more than a month — into a group of a dozen U.S. spot bitcoin ETFs on the same day, data compiled by Bloomberg show. The funds have attracted inflows for seven straight days. Investment products holding ether saw net outflows of $36 million last week, according to data compiled by CoinShares.
“All eyes are on the Federal Reserve,” said Cici Lu McCalman, founder of blockchain consultancy Venn Link Partners, adding that a rate cut in September could boost Bitcoin.
Unlike Bitcoin portfolios, a group of U.S. spot Ether ETFs saw a net outflow on Aug. 23. Ether retreated on Monday, falling as much as 2.1 percent. Other major tokens were little changed.
Toncoin, a blockchain token linked to messaging app Telegram, has suffered losses after the latter’s co-founder Pavel Durov was arrested in France.
First published: August 26, 2024 | 19:43 IS
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