Investors, both institutional and retail, awaiting the meeting of the Federal Reserve (FED) of next Wednesday, an event that, together with other factors, is shaping the behavior of the Bitcoin market (BTC).
Capital flow towards the funds quoted in the stock exchange (ETF) and recent economic signals They have promoted a 4% rise in the price of BTC in the last seven days.
The market awaits a 25 basic point cut in the reference rate, according to the consensus reported by cryptootics. The posterior speech of Jerome Powell, president of the Fed, will be key, since his comments on the trajectory of interest rates and liquidity usually significantly influence the decisions of investors.
The investment firm Coinshares said that, although general inflation slightly exceeded expectations, the markets quickly concluded that this detour was insignificant for the Fed decisions, reassuring investors that Inflation will not be the main obstacle at this week’s meeting.
In this context, Bitcoin cash ETFs in the United States recorded record tickets of 2,340 million dollars last weekthe largest weekly streak since July, without exits, according to Sosovalue data.
This flow, which Add three consecutive weeks of net tickets, it also promotes BTC’s pricesince the managers of these funds buy Bitcoin to support their actions, raising demand and price.
Coinshares stressed that «this rapid increase in flows illustrates the sensitivity of digital asset markets to changes in macroeconomic perception and emphasizes that the evolution of Fed’s discourse is now the main catalyst.»
Rachel Lucas, director of marketing and communication at BTC Markets, said that, despite the fact that the consumer price index (CPI) exceeded the forecasts, «the markets remained inclined towards a CRUIT of the Fed in September.»
«Bond yields remained stable about 4.1%, and operators, in general, discount at least one rate reduction,» says Lucas. This data, combined with the expectation of a feat cut and the strong entry to the ETFs, fed the recent increase in the price of Bitcoin.
The interaction between these factors explains the current dynamics. A rate cut reduces indebtedness costs, encouraging investors to bet on assets considered «risk», such as BTC. Coinshares stressed that «for BTC and the digital asset sector in general, the confluence of factors is constructive.»
For his part, Lucas added that «the institutional appetite seems to be returning to the markets, with ETF tickets and treasury assignments that show how liquidity sensitive assets are Bitcoin are finding support from both macroeconomic factors and market.»
This environment, together with the dynamics of ETFs and the producer price index signal (IPP), promotes the demand of BTC, reflecting in its price. With these expectations, Investors adjust their strategies, ready to take advantage of the opportunities that the rate cut could generate In the market.