Why The Fed Cut Rates and Crypto Suddenly Got $2 Billion Thrown at It (Seriously, What Now?)

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Apparently, crypto inflows decided to cha-cha their way toward a cool $2 billion last week, all thanks to the Federal Reserve’s dazzling decision to snip interest rates. Because who doesn’t love a good rate cut to spice up their digital coin collection? 🕺💸

With these exuberant inflows flooding the digital wallets, the total Assets under Management soared to a Year-To-Date high of $40.4 billion. In layman’s terms: the market is sprinting toward last year’s $48.6 billion, likely to outpace it, or at least try really hard while eating a sandwich. 🥪📈

Fed’s Rate Cut Rockets Crypto Past $1.9 Billion Inflows Last Week – Hold Onto Your Wallets!

Our good friends at BeInCrypto told us that Jerome Powell, the Fed’s chairman and part-time magician, waved his risk-management wand and voilà-interest rates were cut. Presto! Economic optimism ensued, the Dollar took a little nap, equities did the jitterbug, and Bitcoin joined the party with a grin of liquid enthusiasm. 🪙🎉

The result? Crypto inflows rocketed their way up to an eyebrow-raising $1.913 billion last week, which, frankly, sounds like enough to make your neighborhood barista consider investing. ☕🚀

“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,” declared James Butterfill in the latest CoinShares report – presumably after consulting his crystal ball or a particularly eager squirrel.

Bitcoin and Ethereum wore the crown for inflows, pulling in $977 million and $772 million respectively, which would make any crypto-king swoon. Solana and XRP weren’t left out, charming the digital masses with $127.3 million and $69.4 million-because even altcoins gotta eat. 🍽️🐕

This was the second week running with positive inflows, which means even the most skeptical investors were probably scratching their heads while secretly cheering. The week before had a staggering $3.3 billion rushing in, proving that crypto’s popularity is either a hockey stick or a roller coaster – sometimes both at once. 🎢💰

Interestingly, Bitcoin’s star dimmed slightly from $2.4 billion down to $977 million in inflows, like it suddenly remembered it left the oven on. Meanwhile, Ethereum channeled its inner tortoise, crawling from $645 million up to $772 million, proving slow and steady can still chase the hare. 🐢🔥🐇

Butterfill was quick to note that investors initially tiptoed around the so-called hawkish cut like it was a suspiciously wobbly bridge, but then got comfy, pushing $746 million into digital assets on Thursday and Friday, perhaps after realizing it wasn’t a trap. 🕵️‍♂️💼

“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 explained, probably while sipping a very strong cup of tea.

Regionally, the crypto love affair was mostly blissful, except for Hong Kong, where crypto flows tiptoed out quietly like someone forgot it was a party. Meanwhile, the US, Switzerland, and Brazil showed crypto some serious affection, throwing digital roses left and right. 🌹🇺🇸🇨🇭🇧🇷

last week’s positive flows suggest that when the US economy acts like a cat on a hot tin roof, Bitcoin and its merry band of digital rebels gleefully moonwalk in as your portfolio’s eccentric, yet reliable, hedge against despair. 🐱🔥💃

With Powells and Mirans of the world stepping up to the mic this week, expect any sniff of traditional finance confusion to serve as yet another invitation for crypto to crash the party.

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2025-09-22 13:46