nvestment products related to crypto saw a large inflow after the statement made by the Federal Reserve chair Jerome Powell at Jackson Hole Symposium suggesting the possibility of a rate cut.
Bitcoin Dominates Inflows
Bitcoin outperformed the crypto market with $543 million in inflows which occurred after Powell’s speech. This clearly points to the fact that Bitcoin is highly affected by the expectations of interest rates. Notably, short Bitcoin products also witnessed small inflows as well.
Ethereum's Performance
The overall crypto market reacted positively to Powell’s speech, but Ethereum recorded outflows worth $36 million. However, new US-based Ethereum ETFs have already pulled in $3.1 billion dollars, and so partially mitigated the outflows from Grayscale Trust.
Other Crypto Currencies and Blockchain Stocks
For the third week in a row, blockchain equities received fresh money which is a good sign about the overall market sentiment. Other digital coins such as Solano, XRP, and Litecoin also received a little interest.
Powell's Pivot: Bitcoin Surges on Rate Cut Hints
Powell’s comments were particularly dovish and this caused a lot of inflows, especially into Bitcoin as it is considered the safest crypto asset with the most institutional interest. This trend shows that the crypto market is highly influenced by macroeconomic indicators and monetary policy. Moreover, the market got confirmation that interest rates will most probably be cut in September’s FOMC meeting, which will be a pivot point for the whole financial market.
