Bitcoin · Federal Reserve (FED) · Kevin Warsh · CME Group · Cointelegraph
Bitcoin fund flows show investors trading Fed rate path, not exiting market: CoinShares
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Bitcoin’s struggle to break $80,000 comes as markets price in a growing chance of a September rate hike, putting monetary conditions back in focus.
Key facts
- CoinShares’ assessment comes against the backdrop of a strong rebound in Bitcoin and the broader digital asset market last month, when the US Treasury announced plans to double certain long-dated
- Flows reversed over the following week, reaching $1 billion by Sept. 4
- Crypto fund flows are becoming increasingly sensitive to changes in the US interest-rate outlook, with CoinShares arguing that Federal Reserve policy remains a key barrier to Bitcoin (BTC) breaking
- As of Monday, Fed Funds futures prices implied a roughly 60% chance of a rate hike following next week’s Federal Open Market Committee (FOMC) meeting, according to CME Group
Summary
Crypto fund flows are becoming increasingly sensitive to changes in the US interest-rate outlook, with CoinShares arguing that Federal Reserve policy remains a key barrier to Bitcoin (BTC) breaking above $80,000 despite continued investor demand for crypto. In his latest market update, CoinShares head of research James Butterfil argued that “Bitcoin is trading like gold again, but the Fed still sets the ceiling” at around $80,000. That sensitivity was evident after Fed Chair Kevin Warsh’s speech at Jackson Hole. Flows reversed over the following week, reaching $1 billion by Sept. 4.