Bitcoin Surges 5% Despite $52M Outflow from Spot ETF, Fueled by Fed Rate Cut Decision
Recent financial policies by federal bodies have injected a high level of bullish sentiment into both crypto and non-crypto markets.
On September 19, 2024, the U.S. Federal Reserve (Fed) announced its decision to cut interest rates. Fed officials revealed a reduction of the federal funds rate by 0.50 percentage points (bps), the first such cut in four years.
This decision acted as a catalyst to pump the trade price of both Bitcoin (BTC) and the broader cryptocurrency market. Crypto enthusiasts believe the current rally in cryptocurrency prices could see a 150% surge.
An Indian crypto influencer shared insights on the future impact of this decision, noting that Gold has already hit an all-time high, and it’s now Bitcoin’s turn.
Net Outflow From BTC ETF Market
On September 18, Bitcoin spot ETFs experienced a net outflow of $52.827 million, the first outflow after four consecutive days of inflows. Grayscale’s GBTC also saw an outflow of $8.13 million.
This net outflow may cause some concern among BTC spot ETF buyers, as the trade price saw a sudden pump. Current market sentiment is likely to fuel another wave of FOMO among ETF holders, and today may see a net capital inflow.
Bitcoin Price Action
The current trade price of Bitcoin is $62,300, which is 4% higher than in the last 24 hours.
In the same time period, the trade price of Ethereum surged by 5.2%, from $2,288 to $2,441.
Read also: Hackers Compromise Multiple X (Formerly Twitter) Accounts to Promote Ponzi Solana Crypto Token
