Historic interest rate cut! BTC and ETH join hands to reach new highs, and the crypto market is ushering in spring
After the Federal Reserve announced its first interest rate cut in nearly four years on Wednesday, the cryptocurrency market ushered in long-lost signs of recovery. In particular, the two mainstream digital assets of Bitcoin (BTC) and Ethereum (ETH) have achieved a rise of about 10% in the past few days. Notable gains, hitting a three-week high.
The climb in Bitcoin prices has been closely linked to the positive performance of the ETF market. Since the beginning of this year, the 11 Bitcoin spot ETFs launched have attracted the attention of investors, and their capital flows directly reflect the impact of market sentiment on BTC prices. Especially since the ETF was launched soon, it helped BTC set a new historical record within two months. The Fed's interest rate cut, as the first monetary policy adjustment since the birth of BTC ETF, has undoubtedly become the focus of market attention.
In the days before the rate cut, although U.S. investors made a net increase of more than $500 million in financial instruments, there was a subsequent pullback on the day of the rate cut, and then a reversal on the first full trading day. According to FarSide data, The net inflow of ETFs that day was as high as US$158.3 million. Ark Invest’s ARKB led the way with an inflow of US$81.1 million, followed by Fidelity FBTC with an inflow of nearly US$50 million. Market confidence has improved significantly. The price of BTC subsequently climbed from around US$59,000 on the day of the interest rate cut to above US$64,000. Although it has slightly pulled back to around US$63,400 today, the overall upward trend has not changed.
At the same time, the Ethereum ETF also showed positive signs of capital inflows, although its early appeal was not as attractive as the Bitcoin ETF and the number of days of net inflows was relatively limited. On the eve of the Federal Reserve's interest rate cut, the Ethereum ETF experienced continuous fund withdrawals, but the first trading day after the interest rate cut also ushered in a turnaround, with a total net inflow of US$5.2 million, all of which flowed into BlackRock's ETHA and other Ethereum ETFs. There has been no significant change. This change was directly reflected in the price of ETH, which once fell to $2,300 during the conference, but then rebounded quickly. Earlier today, it approached $2,575 for the first time since late August, an increase of more than 12%, together with BTC Lead the market recovery trend.
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