Last week, XRP came to the fore in the favor of institutional investors, with its weekly institutional inflows significantly surpassing Cardano (ADA) and Ethereum, presenting a potential window of opportunity for investors. At the same time, ADA and Ethereum encountered the challenge of capital outflows, of which ADA suffered an outflow of US$200,000, and Ethereum suffered a capital withdrawal of up to US$28.5 million. In contrast, Litecoin and Solana performed more impressively, attracting institutional fund inflows of US$200,000 and US$3.2 million respectively.
Currently, the digital asset investment field has recorded net inflows of funds for two consecutive weeks, totaling up to US$321 million. This trend may be positively affected by the Federal Reserve's Federal Open Market Committee (FOMC) decision to cut interest rates by 50 basis points. As the market leader, Bitcoin’s capital inflows are particularly significant. It has attracted US$284 million in new investments this week, far exceeding the US$76 million inflows from the beginning of the month to the present. The total inflows from the beginning of the year to the present are even more astonishing. Reached US$20.06 billion.
In terms of Bitcoin price, it has shown strong upward momentum in the past 24 hours, once exceeding the $64,000 mark, rising by 2.81%, and hitting a high of $64,360. Although it subsequently pulled back slightly to around $63,300, financial institutions are still optimistic about its performance of more than 11% this week from $57,600, and have increased investment.
Federal Reserve Chairman Jerome Powell unexpectedly announced a 50 basis point interest rate cut at the FOMC meeting on Wednesday, exceeding market expectations of 25 basis points. This move directly promoted the surge in the prices of cryptocurrencies such as Bitcoin. Market experts predict based on this that the Federal Reserve may further cut interest rates by 75 basis points at the next FOMC meeting, bringing more positive expectations to the cryptocurrency market.
On the Ethereum side, despite experiencing a significant rise of nearly 17% last week from $2,294 to $2,677, the price has corrected recently and is currently trading around $2,464. Overall, the cryptocurrency market has responded positively to the Federal Reserve’s interest rate cut policy, indicating that more investment opportunities may continue to come in the future.
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