{"id":130265,"date":"2025-09-09T13:16:11","date_gmt":"2025-09-09T13:16:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/130265\/"},"modified":"2025-09-09T13:16:11","modified_gmt":"2025-09-09T13:16:11","slug":"why-is-crypto-going-up-today-fed-rate-cut-bets-etf-inflows-more","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/130265\/","title":{"rendered":"Why is crypto going up today? Fed rate cut bets, ETF inflows & more…"},"content":{"rendered":"

\t\t\t\t\t\t\t\tKey Takeaways<\/p>\n

Crypto rallied as markets priced an 88% chance of a 25 bps cut and 12% odds of 50 bps next week. Will Thursday\u2019s CPI data shift those bets?<\/p>\n

Crypto market rallied higher amid an increasingly positive outlook ahead of next week\u2019s Fed rate decision.\u00a0<\/p>\n

At the time of writing, the overall crypto market cap rose 1.59% to $3.9 trillion in the past 24 hours, led by Solana\u2019s [SOL]<\/a> 6% pump. SOL was now flirting with the $220 resistance for the first time since February.\u00a0\u00a0<\/p>\n

Cardano [ADA]<\/a> followed closely with a 5% jump. Ripple [XRP]<\/a> also saw a remarkable 3.6% upswing and appeared ready to reclaim $3. <\/p>\n

Ethereum [ETH]<\/a> and Bitcoin [BTC]<\/a> posted a 1.5% gain each. Only Binance coin [BNB]<\/a> saw a negligible rally amongst the large caps.\u00a0<\/p>\n

\"Why<\/a><\/p>\n

Source: CoinMarketCap<\/p>\n

Amongst the mid-cap assets, Hyperliquid [HYPE]<\/a> was an outlier with a 10% rally, thanks partly to massive bidding<\/a> wars by issuers for its upcoming stablecoin USDH.\u00a0<\/p>\n

Chainlink [LINK]<\/a> also fronted a noteworthy move, about 6% pump. This coincided with Grayscale filing for a spot ETF with the SEC.\u00a0<\/p>\n

Fed rate cuts may fuel crypto rally, says strategist Tom Lee<\/p>\n

Across the board, most crypto assets were green, mainly driven by rate cut expectations, according to Wall Street Strategist and CIO of Fundstrat, Tom Lee.\u00a0<\/p>\n

He said<\/a> the rate cut would boost business confidence and spill over to equities and crypto.\u00a0<\/p>\n

\u201cThis is why a Fed cut in Sept will be supportive of equities, particularly small-caps IWM and financials XLF and crypto BTC ETH.\u201d<\/p>\n

Interestingly, markets echoed this optimism.<\/p>\n

CME FedWatch data showed<\/a> an 88% chance of a 25 basis point cut at the 17th of September meeting.<\/p>\n

Following the recent weak Jobs Report, roughly 12% of interest rate traders were anticipating a jumbo 50 basis point cut. In essence, market sentiment appeared overly optimistic heading into the upcoming Federal Reserve meeting.<\/p>\n

\"Why<\/a><\/p>\n

Source: CME Fed Watch<\/p>\n

Spot ETFs return to inflows<\/p>\n

Institutional investors were bullish, too. <\/p>\n

According to Soso Value data, Spot BTC ETFs saw<\/a> $368.25 million daily Net Inflows on the 8th of September. <\/p>\n

Notably, this marked a strong rebound following two consecutive days of outflows, signaling renewed investor confidence.<\/p>\n

\"Why<\/a><\/p>\n

Source: Forex Factory<\/p>\n

This left investors eyeing the U.S. Consumer Price Index (CPI) release on the 11th of September.<\/p>\n

As the Fed\u2019s preferred inflation gauge, CPI could set the tone for the final policy decision and trigger volatility in crypto markets.<\/p>\n

\t\t\t\t\t\t\t\t\t\t\tPrevious: Bitcoin\u2019s retail takeover \u2013 Here\u2019s why BTC whales are backing off!<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n

\t\t\t\t\t\t\t\t\t\t\tNext: HSBC, ICBC enter Hong Kong\u2019s stablecoin race amid new rules \u2013 Details<\/a>\t\t\t\t\t\t\t\t\t\t<\/p>\n","protected":false},"excerpt":{"rendered":"Key Takeaways Crypto rallied as markets priced an 88% chance of a 25 bps cut and 12% odds…\n","protected":false},"author":2,"featured_media":130266,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[1095,64,63,99],"class_list":{"0":"post-130265","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-ambcrypto","9":"tag-au","10":"tag-australia","11":"tag-business"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/130265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=130265"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/130265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/130266"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=130265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=130265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=130265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}