Bitcoin Inflows and Market Response

Bitcoin (BTC) experienced a 2.19% increase with $543 million in inflows last week, following favorable remarks from Fed Chair Jerome Powell, according to CoinShares.

CoinShares noted that most inflows occurred on Friday, coinciding with Powell’s dovish comments. At the week’s conclusion, Powell expressed optimism that U.S. inflation could drop to 2% and hinted at possible interest rate cuts.

Powell’s statements positively impacted Bitcoin’s price, boosting it from below $61,000 to approximately $63,500, as reported by The Block Price Page. With growing confidence in Bitcoin, August inflows have now reached $225 million, per CoinShares.

The Fed Chair’s remarks also benefited crypto investment products. CoinShares stated, “Last week, digital asset investment products experienced inflows totaling $533 million, the highest in five weeks.” BlackRock’s crypto-based ETFs were particularly successful, attracting $346 million in inflows.

The U.S. led in inflows for digital asset products with $498 million, followed by Hong Kong and Switzerland with $16 million and $14 million, respectively.

Since the launch of Ethereum-based ETFs a month ago, they have amassed $3.1 billion in cumulative inflows; however, Grayscale’s ether-based product has seen a decline of $2.5 billion, according to CoinShares.