(Bloomberg) Bitcoin-focused U.S. exchange-traded funds (ETFs) have seen a recovery in demand amid signs of an imminent easing of monetary policy by the Federal Reserve, pushing the price of bitcoin to $65,000 for the first time in nearly three weeks.

On Monday morning (August 26), the price of bitcoin, the world's largest digital asset by market value, rose 1.2% to $65,030 before falling back below $64,000 in the afternoon.

Last week, bitcoin rose 7.4%, its biggest weekly gain since mid-July.

Federal Reserve Chairman Jerome Powell made it clear for the first time last Friday (23rd) that the Fed is expected to cut its benchmark interest rate, which has been at a high for more than 20 years, suggesting that the liquidity environment in global markets may become more relaxed.

On the day Powell made his statement, data showed that net inflows into U.S. spot bitcoin ETF portfolios reached $252 million, the highest level in more than a month. These funds have attracted inflows for seven consecutive days.

The Fed's upcoming rate cut has prompted a rush of funds into emerging market ETFs

Cici Lu McCalman, founder of blockchain advisory firm Venn Link Partners, said the September rate cut could further boost Bitcoin's performance.

Unlike the Bitcoin ETF portfolio, the U.S. spot Ethereum (Ether) ETF portfolio saw a net outflow of funds last Friday. On Monday, the price of Ethereum fell 1.7% at one point. The prices of other major cryptocurrencies did not fluctuate much.

In addition, the blockchain token Toncoin token associated with the instant messaging platform Telegram suffered losses. Previously, Telegram co-founder Pavel Durov was arrested in France, and the reason given by French authorities was that he failed to effectively curb criminal activities on Telegram.