Bloomberg: Powell sends interest rate cut signal to promote a recovery in demand for bitcoin spot ETFs in the United States

Bitcoin prices hit $65,000 for the first time in about three weeks, helped by a resurgence in demand for U.S. bitcoin spot ETFs amid signs that the Federal Reserve will ease monetary policy.
On Monday, bitcoin rose 1.2% to $65,030 before falling back to near $64,000. Last week, bitcoin rallied 7.4%, its highest weekly gain since mid-July.
Federal Reserve Chairperson Jerome Powell said on Friday that the time has come for a policy adjustment and does not seek or welcome further cooling of the labor market, strengthening confidence that inflation will return to 2%. The Wall Street Journal said Powell sent the strongest signal yet that the Fed intends to take action to avoid further weakness in the U.S. labor market. This also bodes well for a more favorable liquidity backdrop in global markets.
The data showed that Mr. Powell's signal spurred a net inflow of $2.52 into US spot bitcoin ETFs, the highest level in more than a month, after the funds attracted inflows for seven consecutive days.
"All eyes are on the Fed," said Cici Lu McCalman, founder of Venn Link Partners, a blockchain consultancy. He added that a rate cut in September could boost bitcoin. (Bloomberg)