Bitcoin and Ether experienced notable gains on Monday morning, driven by the U.S. Federal Reserve’s recent interest rate cut. Bitcoin was trading near $63,000, up 1.2% in the last 24 hours and nearly 8% for the week, while Ether hovered around $2,600, gaining 2.5% in 24 hours and an impressive 15% over the week, according to CoinMarketCap.
This uptick follows the Federal Open Market Committee’s decision to lower interest rates by 50 basis points, establishing the federal funds target range at 4.75% to 5.00%. The move positively impacted risk assets, with the broader crypto market, including altcoins like Solana (SOL), Dogecoin, and Cardano, seeing weekly gains of 8.5%, 4.9%, and 5.9%, respectively.
The AI-driven token sector exhibited the most significant growth, with tokens such as Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Sui (SUI) surging 25%, 81%, and 38% over the week, respectively, as investors flocked to capitalize on the momentum.
Despite recent struggles for spot Bitcoin and Ether ETFs, there are indications of a potential recovery. ETF tracker Farside reported mixed inflows and outflows for spot Bitcoin ETFs and predominantly outflows for spot Ether ETFs in September. However, the Fed’s rate cut may encourage renewed investor interest in these crypto ETFs in the coming days.
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