As the Federal Reserve‘s interest rate decision on Sept. 18 approaches, crypto investment products have seen a dramatic inflow of nearly $436 million, reversing weeks of stagnant interest.
Bitcoin is leading the charge, recovering from a period of heavy withdrawals, while short-sellers betting against Bitcoin are pulling back.
However, Ethereum continues to see outflows, with investors withdrawing $19 million for the third consecutive week.
The upcoming Fed rate cut, expected to be between 25 and 50 basis points, could benefit Bitcoin and other cryptocurrencies by increasing liquidity and weakening the U.S. dollar.
Experts are split on the size of the cut, with potential impacts ranging from a bullish crypto rally to efforts to prevent a recession.
Globally, other economies like the EU and UK have already cut rates, and the Fed’s decision may have far-reaching effects across financial markets.
Image Credit: Pixabay
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