Bitcoin rose by nearly 10% in two days after the Fed’s rate cut, surpassing $63,000

Bitcoin (BTC) saw a strong surge, surpassing the $63,000 mark for the first time since August 27, when it reached $63,201. This appreciation reflects investor optimism after the U.S. Federal Open Market Committee (FOMC) announced yesterday a 0.5 percentage point cut in interest rates, lowering them to a range of 4.75% to 5% per year.

The decision surprised part of the market, which had been expecting a smaller reduction of 0.25 percentage points.

It is worth noting that reductions in U.S. interest rates increase global liquidity and lower the yields of U.S. Treasury bonds, considered the safest assets in the world.

Historically, this combination of factors has a positive impact on equity markets, such as cryptocurrencies. As such, it seems that this scenario is creating interesting opportunities for investors willing to take on more risk in pursuit of higher returns.

With the recent surge, Bitcoin has now gained nearly 10% in just two days, after trading around $57,000.

Despite the rise in Bitcoin, cryptocurrency ETFs record outflows

Despite the significant appreciation of cryptocurrencies in the past 24 hours, spot Bitcoin ETFs on U.S. exchanges posted a net outflow of $52.7 million yesterday.

The ARKB, from Ark Invest, was the main contributor to this capital outflow, with an excess of $43.4 million in sales compared to share purchases.

In the Ether ETF segment, the flow was also negative, totaling $9.8 million in withdrawals. The ETHE from Grayscale led the outflows in this group, with $14.7 million.

At around 10:20 AM (Brasília time), Bitcoin had surged 5.1% in the last 24 hours, trading at $63,121. Ether, the digital currency of the Ethereum network, followed the trend, rising 5.4% to reach $2,439, according to CoinGecko data.

The total market value of all cryptocurrencies reached $2.27 trillion.

Among altcoins, Solana (SOL) surprised, soaring 8.4% to reach $140.92. BNB, the token of Binance Smart Chain, increased by 4.3% to $566.12. Finally, Avalanche (AVAX) posted significant gains of 13.1%, reaching $26.38.

Analysts believe the Fed will continue cutting rates

The recent surge in the financial market reflects a growing investor appetite for riskier assets. This is driven by expectations that the Federal Reserve will implement further rate cuts in its upcoming meetings.

Agreeing with this outlook, Taiamã Demanan, head of analysis at Coinext, interprets the FOMC’s recent 50 basis point rate cut as an indication that the U.S. monetary council was “lagging behind.” He points out that trends in unemployment and inflation had already signaled the need for monetary easing.

Finally, Demanan adds that Bitcoin, which had been stagnant since March, may continue fluctuating laterally throughout September. However, he believes that BTC will soon start absorbing risk capital again.