Recent financial policies by federal bodies have injected a high level of bullish sentiment into both crypto and non-crypto markets.
On September 19, 2024, the U.S. Federal Reserve (Fed) announced its decision to cut interest rates. Fed officials revealed a reduction of the federal funds rate by 0.50 percentage points (bps), the first such cut in four years.
Today's Market Prognosis: Fed cuts by 50 bps #Macro news: â¶ïž#Fed cut its FFR by 50 bps (it last cut rates by 50 bps in Sept 2007, 15 months later the S&P 500 halved in value)â¶ïž10 yr bond #yields and risk assets are both risingâ¶ïž#BoE MPC meeting today â expectation for a pause⊠pic.twitter.com/OjtVdCrIYZ
â Progressive Equity (@prog_res) September 19, 2024
This decision acted as a catalyst to pump the trade price of both Bitcoin (BTC) and the broader cryptocurrency market. Crypto enthusiasts believe the current rally in cryptocurrency prices could see a 150% surge.
BULLISH #FOMC pic.twitter.com/Q7CMEQ5rLu
â borovik (@3orovik) September 18, 2024
An Indian crypto influencer shared insights on the future impact of this decision, noting that Gold has already hit an all-time high, and itâs now Bitcoinâs turn.
50 BPS rate cut explained in simple terms:In the long term:A rate cut means more money flows into the market, so a 50 BPS means a massive amount of dollars flowing into stocks and crypto.ButâŠIn the short term:50 BPS signals that everything is not going well in theâŠ
â Kashif Raza (@simplykashif) September 18, 2024
Net Outflow From BTC ETF MarketÂ
On September 18, Bitcoin spot ETFs experienced a net outflow of $52.827 million, the first outflow after four consecutive days of inflows. Grayscaleâs GBTC also saw an outflow of $8.13 million.
Bitcoin spot ETF had a total net outflow of $52.827 million on September 18, the first net outflow after the net inflow in the past 4 days. Grayscale ETF GBTC had an outflow of $8.1347 million. https://t.co/59u0BnEqLG
â Wu Blockchain (@WuBlockchain) September 19, 2024
This net outflow may cause some concern among BTC spot ETF buyers, as the trade price saw a sudden pump. Current market sentiment is likely to fuel another wave of FOMO among ETF holders, and today may see a net capital inflow.
Bitcoin Price Action
The current trade price of Bitcoin is $62,300, which is 4% higher than in the last 24 hours.
In the same time period, the trade price of Ethereum surged by 5.2%, from $2,288 to $2,441.Â
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