Bitcoin Touches $65,000 for First Time in Three Weeks as ETF Demand Revives

Fed Chair Jerome Powell on Friday gave the clearest indication yet that the central bank is on course to cut benchmark rates from a more than two-decade high

Bitcoin rose on Monday to its highest level in three weeks, helped by renewed demand for dedicated US exchange-traded funds as signs emerged that the Federal Reserve is set to loosen monetary policy.

The world's largest cryptocurrency rose 1.2% to $65,030 before dipping back to $64,000 as of 1.35pm in Singapore. It was set for a seventh straight day of gains.

The largest digital asset slipped below the key threshold of $60,000 in mid-August after a new batch of US inflation data stoked concerns over the outlook for interest rates.

But Fed Chair Jerome Powell on Friday gave the clearest indication yet that the central bank is on course to cut benchmark rates from a more than two-decade high, portending a more favorable liquidity backdrop for global markets.

Powell's signal spurred a $252 million net inflow — the highest in more than a month — into a group of one dozen US spot-Bitcoin ETFs the same day, according to data compiled by Bloomberg. The funds have attracted inflows for seven days in a row.

“All eyes are on the Fed,” said Cici Lu McCalman, founder of blockchain adviser Venn Link Partners, adding that a September rate cut may boost Bitcoin.

“This could help propel the cryptocurrency further up the regulatory ladder, paving the way for more institutional adoption.”

Unlike the Bitcoin portfolios, a group of US spot-Ether ETFs suffered a net outflow on Aug. 23. Ether was on the back foot on Monday, dropping as much as 1.7%. Other major tokens were little changed.

Toncoin, a token from a blockchain linked to messaging app Telegram, nursed losses after the latter's co-founder Pavel Durov was detained in France.

The above is the detailed content of Bitcoin Touches $65,000 for First Time in Three Weeks as ETF Demand Revives. For more information, please follow other related articles on the PHP Chinese website!