Bitcoin’s price rose on Wednesday in anticipation of an interest rate cut by the Federal Reserve, while data showing an improvement in capital flows into spot exchange-traded funds also aided sentiment.
Bitcoin rose 3.8% to $60,469.1 by 00:43 ET (04:43 GMT), after flitting in a trading range of $50,000 to $60,000 for most of September.
Broader cryptocurrency prices also rose as markets positioned for lower U.S. interest rates, which are expected to benefit risk-driven, speculative assets.
Bitcoin ETFs see inflows after two weeks of outflows Data this week showed BlackRock’s iShares Bitcoin Trust saw its first day of inflows in two weeks on Monday, breaking a sustained run of outflows seen since mid-August.
The inflows marked some turnaround in sentiment after uncertainty over the U.S. presidential election, interest rates and a potential recession weighed heavily on crypto prices across the board.
But trading volumes in U.S. Bitcoin ETFs still remained well below highs seen earlier this year, as enthusiasm over the ETFs petered out, especially amid retail traders.
Microstrategy buys more Bitcoin, to issue more debt Software firm MicroStrategy Incorporated (NASDAQ:MSTR) bought about $1.1 billion worth of Bitcoin between August 6 and September 12, the company disclosed last week, furthering its spot as the biggest corporate holder of the token. The company holds about $9.5 billion worth of Bitcoin.
The company said this week it will raise about $700 million through a private issuance of convertible bonds due 2028, which will be deployed towards redeeming earlier debt obligations and buying more Bitcoin.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Crypto price today: altcoins advance, Fed rate cut awaited Broader cryptocurrency prices drifted higher in anticipation of a widely expected interest rate cut by the Federal Reserve later on Wednesday.
World no.2 crypto Ether rose 1.4% to $2,319.94, while altcoins XRP, Solana, (AS:MATIC) and Cardano moved in a flat-to-low range.
Among meme tokens, Dogecoin rose 0.2%.
The Fed is widely expected to cut interest rates at the conclusion of a meeting later on Wednesday. While markets were initially split between bets for a 25 or 50 basis point cut, CME Fedwatch showed traders growing more biased towards a bigger cut in recent sessions.
Lower rates free up liquidity that can then be deployed into risk-driven, speculative assets such as crypto.
