Investing.com — Bitcoin prices rose on Wednesday in anticipation of an interest rate cut by the Federal Reserve, while data showing improved capital flows into cash exchange-traded funds also helped sentiment.
rose 3.8% to $60,469.1 as of 00:43 ET (04:43 GMT), after hovering in a trading range of $50,000 to $60,000 for most of September.
Broader cryptocurrency prices also rose as markets positioned for lower interest rates in the United States, which is expected to benefit risk-driven speculative assets.
Bitcoin ETFs see inflows after two weeks of outflows
Data this week showed BlackRock’s iShares Bitcoin Trust saw its first day of inflows in two weeks on Monday, breaking a sustained streak of outflows seen since mid-August.
The inflows marked a shift in sentiment after uncertainty over the US presidential election, interest rates and a potential recession weighed heavily on cryptocurrency prices overall.
But trading volumes for U.S. Bitcoin ETFs still remained well below the highs seen earlier this year as enthusiasm for ETFs waned, especially among retail traders.
Microstrategy buys more Bitcoin to issue more debt
Software company MicroStrategy Incorporated (NASDAQ:) purchased about $1.1 billion worth of bitcoin between Aug. 6 and Sept. 12, the company disclosed last week, cementing its position as the largest corporate holder of the token. The company owns about $9.5 billion worth of bitcoin.
The company said this week it will raise around $700 million through a private issuance of convertible bonds due in 2028, which will be used to redeem previous debt obligations and buy more Bitcoin.
Cryptocurrency price today: Altcoins advance, Fed rate cut expected
Broader cryptocurrency prices rose in anticipation of a widely expected interest rate cut by the Federal Reserve later on Wednesday.
The world's No. 2 cryptocurrency, Ether, rose 1.4% to $2,319.94, while altcoins , , (AS:) and , moved in a flat to lower range.
Among meme tokens, it rose 0.2%.
The Federal Reserve is expected to cut interest rates at the end of a meeting later on Wednesday. While markets were initially split between bets on a 25- or 50-basis-point cut, CME Fedwatch showed traders increasingly leaning toward a larger cut in recent sessions.
Lower rates free up liquidity that can then be invested in speculative and risky assets such as cryptocurrencies.
