Bitcoin set a new all-time high last night, surpassing $76,000 for the first time.
The Fed’s anticipated rate cut on Thursday could potentially push Bitcoin prices even higher.
Spot bitcoin ETFs experienced significant inflows of $621.9 million on Wednesday, following the clear outcome of the 2024 U.S. presidential election.
Bitcoin (BTCUSD) briefly reclaimed the $76,000 mark on Thursday as investors anticipated the U.S. Federal Reserve’s rate cut decision.
Despite a slight dip in early trading on Thursday, Bitcoin quickly recovered and approached its record high once again.
The market anticipates a quarter of a percentage point cut in interest rates by the Fed today. Historically, such rate cuts have positively influenced Bitcoin’s price. Lower interest rates can reduce Treasury and bond yields, making riskier assets like Bitcoin more appealing to investors.
Bitcoin ETF inflows surged amid the optimism following the election results.
Donald Trump’s victory in Tuesday’s presidential election, along with the promise of more crypto-friendly regulations due to an increase in pro-crypto lawmakers in Congress, has bolstered Bitcoin’s value in recent days. This was evident in the substantial inflows into spot Bitcoin exchange-traded funds (ETFs).
Post-election results, Bitcoin ETFs saw a net inflow of $621.9 million on Wednesday, as per data from Farside Investors. Nearly half of these funds were directed towards the Fidelity Wise Origin Bitcoin Fund (FBTC), while BlackRock’s iShares Bitcoin Trust (IBIT) experienced its first-ever two-day outflow streak.
Interestingly, spot Ether (ETHUSD) ETFs also had their fifth-largest day of inflows on Wednesday, amounting to $52.3 million, albeit still smaller compared to the Bitcoin ETF inflows.
If you have a news tip for Apex Financial Path reporters, please email us at tips@apexfinancialpath.com
