Published on augustus 24, 2024, 12:27 am
Image source: Fox News
```json [ "TLDR: The US Federal Reserve plans to lower interest rates in September, leading to excitement in the cryptocurrency market with Bitcoin's price surging over $63,000. Analysts anticipate further gains post-rate cuts. Institutional interest remains strong despite market fluctuations, with growing inflows into digital asset investment funds like iShares Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund." ] ```
The US Federal Reserve is gearing up to lower its benchmark interest rate in September, as indicated by United States Federal Reserve Chair Jerome Powell during the annual Jackson Hole Symposium. This announcement has stirred excitement in the cryptocurrency realm, particularly leading to a surge in the price of Bitcoin (BTC) to over $63,000. Analysts predict that further gains can be expected once the Federal Reserve initiates the rate cuts.
Leena ElDeeb, a researcher at 21Shares, pointed out that previous instances of interest rate reductions have generally been favorable for digital assets’ value appreciation. Investors tend to capitalize on lower loan costs to delve into risk-on asset classes such as cryptocurrencies. She referenced a notable scenario during the onset of the COVID-19 pandemic where a rate cut had a positive impact on digital asset prices.
Furthermore, ElDeeb highlighted the significance of changes in the M2 money supply in propelling Bitcoin’s trajectory. Typically, Bitcoin’s price tends to hit its lowest point prior to a surge coinciding with the bottoming out of the M2 money supply before experiencing a pullback phase known as a “mid-cycle correction.” She expressed optimism regarding Bitcoin exchange-traded funds (ETFs) being instrumental in driving price appreciation within this context.
Institutional interest in digital asset investment remains robust despite recent fluctuations, evidenced by substantial inflows into various funds like BlackRock’s iShares Bitcoin Trust ETF and Fidelity’s Wise Origin Bitcoin Fund. Notably, there has been a resurgence in inflows into digital asset investment vehicles by institutions and investment advisers during recent periods.
This mounting enthusiasm surrounding digital assets signals ongoing growth opportunities within the cryptocurrency landscape. As market dynamics continue to evolve alongside regulatory developments and macroeconomic factors, investors are keeping a close eye on how these trends will shape future investment decisions.
Original article posted by Fox News
