Bitcoin Reaches $65,000 as ETF Inflows Increase Amid Fed Speculation

August 27, 2024 12:00 AM AEST | By Team Kalkine Media

Google News:

Bitcoin Reaches $65,000 as ETF Inflows Increase Amid Fed Speculation — Image source: shutterstock

Recent News

Kalkine : ASX 200 Energy Share WDS Gains Strength After Project Progre...

Kalkine: ASX 200 Steady as Sydney Stock Exchange Sees Zero Activity

Kalkine : ASX 200, Hang Seng, Nikkei 225: Index Momentum Cools as Resi...

Kalkine: ASX 200 Stable Amid Tax Policy Dispute Over Bracket Indexatio...

Bitcoin, the largest cryptocurrency, reached $65,000 on Monday, driven by a renewed surge in demand for U.S. exchange-traded funds (ETFs) and anticipation of changes in Federal Reserve policy. After peaking at $65,000, Bitcoin settled at $64,000 in the afternoon in Singapore, reflecting a 7.4% rise over the previous week, the most significant weekly gain since mid-July.

Fed Policy Signals Boost Market Sentiment

The increase in Bitcoin's value coincides with Federal Reserve Chair Jerome Powell’s comments suggesting an upcoming reduction in interest rates, which are currently at their highest in more than two decades. Powell’s statement has fueled optimism in the global markets, with Bitcoin experiencing a notable influx of $252 million into U.S. spot-Bitcoin ETFs on the same day. This inflow marks the highest in over a month and extends the streak to seven consecutive days of positive inflows.

Cici Lu McCalman, founder of blockchain advisory firm Venn Link Partners, indicated that market participants are closely watching the Federal Reserve, with the prospect of a September rate cut potentially providing further support to Bitcoin's performance.

Mixed Performance in Other Cryptocurrencies

While Bitcoin saw positive momentum, the broader cryptocurrency market displayed mixed results. Ether, the second-largest cryptocurrency by market capitalization, declined by 1.7% on Monday, and U.S. spot-Ether ETFs experienced a net outflow on August 23. Meanwhile, Toncoin, a token connected to the Telegram messaging app, continued to face losses following the detention of Telegram’s co-founder, Pavel Durov, in France.

This divergence in performance highlights the varying factors influencing different segments of the cryptocurrency market. Bitcoin’s resurgence, driven by ETF inflows and potential changes in monetary policy, contrasts with the challenges faced by other digital assets, underscoring the complex dynamics within the sector.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.