Bitcoin Nears All-Time Highs as U.S. Rate Cuts Are Anticipated: Bitcoin has seen a significant rise, reaching a value of $65,000,
driven by increased demand for exchange-traded funds (ETFs) in the U.S.
and signals that the Federal Reserve may be close to easing monetary policy.
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Significant Rise in Bitcoin’s Value
Ethereum and Other Cryptocurrencies Decline
Toncoin Losses and Telegram Founder’s Arrest
Significant Rise in Bitcoin’s Value
The value of Bitcoin reached $65,000 for the first time in nearly three weeks,
supported by a rebound in demand for U.S. exchange-traded
funds and growing expectations that the Federal Reserve will soon cut interest rates.
The largest digital asset rose 1.2% to $65,030 on Monday before retreating to $64,000 at 1:35 PM Singapore time.
The cryptocurrency surged 7.4% last week, marking its biggest weekly gain since mid-July.
Impact of Powell’s Statements
Last Friday, Federal Reserve Chairman Jerome Powell provided the most unambiguous
indication that the central bank is on track to lower the benchmark
interest rates from their highest level in over two decades.
According to data compiled by Bloomberg, these remarks led to an inflow of $252 million
the highest in over a month—into a group of twelve Bitcoin-linked exchange-traded funds on the same day.
These funds have seen positive inflows for seven consecutive days.
Experts’ Opinions
Cici Lu McCalman, founder of blockchain consultancy firm Venn Link Partners, said, ”
All eyes are on the Federal Reserve,” adding that the anticipated rate cut in September could further boost Bitcoin’s value.
Ethereum and Other Cryptocurrencies Decline
In contrast to Bitcoin, a group of U.S.-based spot exchange-traded funds linked to Ethereum experienced net outflows on August 23.
Ethereum also underperformed, declining by 1.7% on Monday, while other significant tokens saw little change.
Toncoin Losses and Telegram Founder’s Arrest
Toncoin, a blockchain token linked to the messaging app Telegram,
suffered losses after Pavel Durov, the app’s co-founder, was arrested in France.
Bitcoin Nears All-Time Highs as U.S. Rate Cuts Are Anticipated