Bitcoin reached $65,000 for the first time in three weeks, driven by renewed interest in U.S. exchange-traded funds (ETFs) and signs that the Federal Reserve may soon ease its monetary policy. On Monday, Bitcoin rose 1.2% to hit $65,030 before slightly dipping to $64,000 by early afternoon in Singapore. This follows a 7.4% increase last week, marking its strongest weekly performance since mid-July.
Federal Reserve Chair Jerome Powell hinted on Friday that the central bank is likely to reduce its benchmark interest rates, which are currently at their highest in over two decades. This potential policy shift could create a more favorable environment for global markets, including cryptocurrencies.
Powell’s comments sparked a $252 million net inflow into a dozen U.S. spot-Bitcoin ETFs, the highest in over a month. These funds have seen inflows for seven consecutive days. Cici Lu McCalman, founder of blockchain advisory firm Venn Link Partners, noted that a rate cut in September could further boost Bitcoin.
In contrast, U.S. spot-Ether ETFs experienced outflows on August 23. Ether and other major cryptocurrencies remained relatively stable, while Toncoin, linked to the messaging app Telegram, faced losses following the detention of Telegram co-founder Pavel Durov in France.
