Bitcoin's price has seen a 1.55% pump over the past hour. At publication, BTC is trading at $60,480.58. This price rise has happened because of major economic developments in the United States.
Bitcoin price experienced a surge of 1.55% within the past hour. At press time, BTC is valued at $60,480.58. This price increase is attributed to significant economic developments in the United States.
Cryptocurrency analyst “WatcherGuru” shared this breaking news with his vast following of 2.4 million on X.
According to the analyst, the U.S. Federal Reserve has slashed interest rates for the first time in four years, specifically by 50 basis points (bps). This marks a pivotal shift in monetary policy following years of aggressive rate increases aimed at combating inflation.
BREAKING: 🇺🇸 Federal Reserve cuts interest rates by 50bps for the first good time in four years.
This move comes after years of the Federal Reserve raising interest rates aggressively, with 11 increases in two years, bringing interest rates to the highest in 23 years.
Moreover, the Fed anticipates a change in direction, considering that inflation has dropped from 9.1% in 2022 to 2.5%, as indicated by the latest Consumer Price Index (CPI) statistics. Subsequently, the rate cuts are expected to continue into 2025.
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Bitcoin Sees Inflow In Light of Rate Cuts
Another X update from LookonChain, boasting 448.6k followers, highlighted a substantial inflow of investment in Bitcoin.
The analyst's analysis revealed that a net flow of 2,695 BTC ($161.29 million) was observed across 10 Bitcoin exchange-traded funds (ETFs). Notably, Fidelity alone contributed 940 BTC ($56.24 million) to this total, bringing its overall holdings to 175,865 BTC, valued at $10.52 billion.
This strong influx of capital into Bitcoin ETFs is indicative of sustained confidence in the cryptocurrency market.
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Ethereum Faces Outflows as Bitcoin Strengthens
In contrast to Bitcoin's positive fund flow, Ethereum experienced outflows. The analysis noted a net outflow of 4,973 ETH ($11.46 million) across nine Ethereum ETFs.
Substantial withdrawals were observed from Grayscale's Ethereum Trust, with a drop of 6,199 ETH, leaving its total holdings at 1,732,011 ETH, valued at $3.99 billion.
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