Revival in Bitcoin Investments: Impact of Inflation Figures and Federal Rate Decisions

Data from the last few weeks has shown a significant capital inflow to cryptocurrencies, namely Bitcoin, after their value temporarily dropped. In CoinShare’s recent report, it was discovered that a total of $28.5 million was invested in digital assets, with BTC attracting the most influx of $27 million, followed closely by Ethereum (ETH) with $2.5 million and XRP leading with a massive 127% increase and a total of $0.5 million. This positivity could be, in part, credited to the release of neat inflation figures for July and also the decreased chances of a rate hike in September as stated by the CME FedWatch tool .

The decrease of inflation in the US and the Bank of Canada maintaining a 5% rate established the most important realization of this year that the accelerated rate hikes implemented by The Federal Reserve could now be coming to an end. This stirred market enthusiasm for a U.S Bitcoin spot ETF, filing by prestigious organisations such as BlackRock and Fidelity hinting it would become a reality in time, that drove the Bitcoin to pass $30,000 with Bitcoin funds accruing an incredible $742 million in several weeks.

Predicted by Bloomberg’s ETF experts, the chances of a spot BTC ETF being cleared in 2023 lie at a solid 65%. All instructions arising from previous data showcase a crystal picture of assured institutional investor flows leading to present, and future, increases in the cryptocurrency expansion.

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Robert Wilson author
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