Bitcoin Briefly Trades Above $76K Again Ahead Of Fed Rate Cut
Bitcoin (BTCUSD) was briefly back above $76,000 Thursday as investors await the rate cut decision by the U.S. Federal Reserve.
The largest cryptocurrency by market cap jumped to another all-time high of $76,481 Wednesday amid optimism of the election results. Although, fumbled a little in early trading Thursday but recovered quickly to come within striking distance of that level again.
The Fed is expected to cut interest rates by a quarter of a percentage point on today. In the past, rate cuts have had a positive impact on the bitcoin price. Lower rates can push down Treasury and bond yields making riskier assets such as bitcoin more attractive to investors.
Donald Trump's win in Tuesday's presidential election and promise of more crypto-friendly regulations thanks to more pro-crypto lawmakers in the Congress has boosted bitcoin prices in recent days. That was also reflected in strong inflows into spot bitcoin exchange-traded funds (ETFs).
After the election results became clear, bitcoin ETFs saw $621.9 million in net inflows on Wednesday, according to data compiled Farside Investors. Nearly half of those flows found their way into the Fidelity Wise Origin Bitcoin Fund (FBTC), while BlackRock's iShares Bitcoin Trust (IBIT) saw its first ever two-day outflows streak.
Notably, spot ether (ETHUSD) ETFs also saw their fifth largest day of inflows on Wednesday; however, this was still relatively small compared to the bitcoin ETF flows at $52.3 million.
