Cryptocurrency market rises amid anticipation of US monetary easing, investor optimism

(MENAFN) Cryptocurrency prices experienced a notable increase during yesterday's trading session, buoyed by growing expectations that the U.S. Federal Reserve might implement monetary easing measures as early as next month. This optimism comes despite the ongoing volatility that has characterized the digital assets market recently. Bitcoin, the leading cryptocurrency, saw its value rise by 1.26 percent, reaching USD61,056.18, while Ethereum, another major digital currency, increased by 2.44 percent to USD2,669. Ripple also experienced a modest gain, climbing by 0.47 percent to 59.93 cents. These price movements reflect the market's positive sentiment as investors speculate on potential shifts in U.S. monetary policy.

The recent uptick in cryptocurrency prices coincides with heightened anticipation surrounding Federal Reserve Chairman Jerome Powell’s upcoming speech at the Jackson Hole forum. Investors are closely monitoring Powell's remarks, with many expecting that the current cycle of monetary tightening may come to an end as soon as next month. This sentiment has further fueled optimism in the cryptocurrency market, as lower interest rates could drive more investment into digital assets. Additionally, Bitcoin exchange-traded funds (ETFs) in the U.S. have seen a significant influx of capital, with net inflows totaling USD236.6 million over the five consecutive days leading up to Wednesday.

On Wednesday alone, these Bitcoin ETFs attracted net investments amounting to USD39.5 million, underscoring the strong investor interest in the cryptocurrency market. Since the approval of their offering earlier this year, the cumulative total net inflows into these funds have reached an impressive USD17.6 billion. This substantial investment reflects the growing confidence in Bitcoin and other digital assets as viable investment options, particularly in an environment where traditional financial markets are closely tied to central bank policies. As the market awaits further clarity on the Federal Reserve’s next moves, cryptocurrencies are likely to remain in focus, with investors keenly watching for any signs that could influence future price trends. 

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