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Bitcoin Surges to $64K as Fed Rate Cut Sparks $321M in Crypto Inflows, $92M in Bitcoin ETFs

Sep 23, 2024, 12:27 PM

Bitcoin has surged to a high of $64,000, driven by the U.S. Federal Reserve's recent decision to cut interest rates by 50 basis points. This rate cut has spurred significant inflows into digital asset investment products, totaling $321 million last week, with Bitcoin ETFs leading the way and adding $92M. Ethereum has also experienced notable gains, rising 16% following the rate cut, outpacing Bitcoin's 6% increase. Institutional interest, including investments from firms like Goldman Sachs and Morgan Stanley, has further fueled optimism in the crypto market. Additionally, the SEC's approval of options on spot Bitcoin ETFs and a potential gamma squeeze are seen as factors that could propel Bitcoin's price even higher. Bitcoin reached a high of $63,800 before stabilizing. However, the market is now showing signs of stabilization as the initial euphoria from the rate cut fades.