A significant increase in investments in digital currencies with the expectation of a drop in interest rates.

A recent report from Coinshares shows that the digital currency market has seen a significant increase in investment activity over the past week. Cryptocurrency investment products have seen the most inflows over the past five weeks. This increase coincided with investors’ expectations of a possible interest rate cut by the US Federal Reserve. According to the report, digital currency investment funds saw an inflow of $533 million between August 18 and 24 (August 28 to September 3). The majority of these flows were directed to Bitcoin-related funds. This surge in interest in Bitcoin investment coincided with comments from Federal Reserve Chairman Jerome Powell on August 21 (August 31) hinting at the possibility of interest rate cuts in September 2024. In contrast, Ethereum-related investment products underperformed in comparison, recording a net outflow of $36 million during the reporting period.