Net Inflow of $321 million in Crypto Funds After Fed Rate Cut

September 23, 2024

Summary [ Gen-Z ]:

The Fed cut rates, making money cheaper, and it's flowing into crypto. Last week alone, $321M came in, with Bitcoin taking the lead while ETH, BNB, and ADA were in the red. Interestingly, $5.1M was used to bet against Bitcoin (Short Bitcoin). 

With the Fed's 50 bps rate cut, more cash might hit the market, but it's also a red flag that the economy needs a boost to stay afloat.

With the decision of Fed rate cut, new money is flowing into crypto. Last week’s inflow hit a record of $321 million.

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Based on data released by CoinShares, Bitcoin led the inflow of money while Ethereum, BNB, and Cardano remained negative. Meanwhile, $5.1m inflow went for “Short Bitcoin”.

For the first time since the Fed cut last week, the market is pricing a better than 50% probability that they cut another 50 bps at the next FOMC meeting (Nov 7).

-151% = -100% fully prices a 25 bps cut, -51% for a 50 bps cut (negative = cut, positive = hike) pic.twitter.com/fBD5Rbnqm8
— Jim Bianco (@biancoresearch) September 23, 2024

After the decision of 50 bps rate cut by the Fed, the impacts can be deeper. Cheaper money might enter the market but this also signals a weaker economy that needs artificial boosting.

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Krishna Dahal

Krishna Dahal is a web3 and crypto expert with over seven years of experience. Since starting full-time in 2017, he has contributed to 15+ blockchain projects. He is the founder of Lamida Crypto, a platform focused on crypto education and adoption, and the CEO of CheckerChain, a project building a decentralized trust and verification system. Krishna’s leadership has driven innovation in the crypto space, making him a key figure in advancing blockchain technology and decentralized solutions.