The Fed chair's remarks boosted the entire cryptocurrency market
Following Fed Chair Jerome Powell’s speech at the Jackson Hole conference, where he hinted at potential interest rate cuts and emphasized the need for policy adjustments, the crypto market experienced a notable surge. Bitcoin, which had been struggling to break through the $60,000 resistance level, finally did so, gaining momentum from Powell’s dovish tone.
By Friday afternoon, Bitcoin had surged nearly 5%, surpassing the $63,000 mark. Ether, the second-largest cryptocurrency by market capitalization, also benefited from the bullish sentiment, climbing over 4% to reach $2,700. The positive market movement wasn’t limited to just Bitcoin and Ether. Other major cryptocurrencies, including Solana, Dogecoin, Cardano, and Avalanche, saw significant gains as well, with increases of over 4%, 6%, 4%, and 8%, respectively. Overall, the global crypto market cap reached $2.22 trillion, representing a more than 4% jump in the past 24 hours.
This broad-based rally in the crypto market highlights the strong correlation between macroeconomic signals and digital asset performance. Investors appear to be reacting optimistically to the possibility of a more accommodating monetary policy, which could spur further interest in riskier assets such as cryptocurrencies.
Meanwhile, spot Bitcoin ETFs have been performing exceptionally well over the past week, with consistent inflows and no recorded outflows. According to data from Bitcoin ETF tracker Farside, total inflows into spot Bitcoin ETFs have reached $17.6 billion. Leading the pack is BlackRock $BLK’s (BLK) IBIT, which has seen $20 billion in inflows to date, making it the top-performing spot Bitcoin ETF. On the other hand, Grayscale’s (GBTC) GBTC has experienced significant outflows totaling $19 billion.
In contrast, investors have shown little interest in spot Ether ETFs over the past week. Unlike Bitcoin ETFs, spot Ether ETFs have only seen outflows, with no days of positive inflows. Combined, spot Ether ETFs have witnessed $459 million in outflows, as per Farside data. Among them, BlackRock’s (BLK) ETHA managed to attract $1 billion in inflows, while Grayscale’s ETHE has fared the worst, suffering $2.5 billion in outflows.
This divergence between Bitcoin and Ether ETFs reflects varying investor sentiment, with Bitcoin maintaining strong appeal while Ether faces ongoing challenges.
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