Crypto Inflows Surge Near $2 Billion as Fed Rate Cut Ignites Market Frenzy

Digital asset markets explode with renewed vigor as institutional money floods back into cryptocurrency.

The Federal Reserve's unexpected rate cut sends shockwaves through traditional finance—and straight into crypto's waiting arms.

Market Momentum Builds

Investment products see nearly $2 billion in fresh capital as investors pivot from yield-starved traditional assets. Bitcoin leads the charge with institutional ETFs capturing the lion's share of inflows.

Altcoins Ride the Wave

Ethereum and major altcoins benefit from the spillover effect as risk appetite returns to digital markets. Trading volumes spike across major exchanges while derivatives activity hits multi-month highs.

The Fed's unintended crypto stimulus proves once again that traditional monetary policy now fuels digital asset demand more effectively than any blockchain upgrade ever could. Wall Street's loss becomes crypto's gain as capital seeks real returns beyond the zero-bound trap of conventional markets.

Fed Rate Cut Pushed Crypto Inflows Past $1.9 Billion Last Week

BeInCrypto reported the Fed’s MOVE to cut interest rates last week, with chair Jerome Powell framing the rate cut as a risk management decision 

Against this backdrop, the Dollar weakened while equities and Bitcoin rallied on liquidity-driven optimism.

This translated to a notable surge in crypto inflows, reaching $1.913 billion last week.

“Digital asset investment products saw $1.9 billion of inflows last week, marking a positive response to the ‘hawkish cut’ by the FED last week,” James Butterfill wrote in the latest CoinShares report.

The data show that Bitcoin and ethereum led with inflows of $977 million and $772 million, respectively. Meanwhile, Solana and XRP registered similar sentiment, attracting positive flows of $127.3 million and $69.4 million, respectively.

Meanwhile, this marked the second consecutive week of positive flows, after the $3.3 billion recorded in the week ending September 13.

However, comparing the two successive weeks shows that while investment into Bitcoin products reduced from $2.4 billion to $977 million, Ethereum registered a notable surge, moving from $645 million to $772 million last week.

With the surge in crypto inflows ascribed to the Fed’s interest rate cut decision, Butterfill acknowledged initial caution among investors.

“Although investors initially reacted cautiously to the so-called hawkish cut, inflows resumed later in the week, with $746 million entering on Thursday and Friday as markets began to digest the implications for digital assets,” Butterfill added.

On regional metrics, sentiment was broadly positive, save for Hong Kong, which recorded minor outflows. Meanwhile, the US, Switzerland, and Brazil all recorded notable crypto inflows.

If anything, last week’s positive flows suggest that US economic data continue to elevate bitcoin and crypto as an alternative asset class.

They point to an abounding role of crypto and digital assets as portfolio diversifiers and hedges against economic uncertainty.  

With multiple Fed officials, including Powell and Stephen Miran, set to speak this week, any indications of continued traditional finance (TradFi) market uncertainty could also bode well for crypto inflows this week.