Key Takeaways
- Digital asset inflows have surged to $1.2 billion.
- Over the past month, crypto has defied historical Redtember trends.
- The U.S. central bank recently lowered interest rates for the first time in more than four years.
September surprisingly saw a rather strong period for crypto as the market defied its historical trend of a challenging Redtember.
Amid an aggressive shift in U.S. monetary policies following the Federal Reserve’s 50 bps cut, digital asset inflows have continued to surge as we enter into October.
Digital Assets Surge
For a third week in a row, digital asset investment products totaled $1.2 billion, according to CoinShares, with total assets under management rising by 6.2%.
The asset manager reported an inflow of $1 billion into Bitcoin (BTC) over the past week and inflows of $8.8 billion into short-bitcoin investment products.
As well as Bitcoin, some digital assets that had previously been in a long-scale slump saw a positive upturn, too.
Ethereum (ETH) saw an increase in capital of $87 million over the past week, its first significant upturn since the beginning of August.
Altcoins were not as universally positive, however, as Binance saw inflows of $1.2 million, and XRP reported an increase of $0.8 million.
U.S. Rate Cuts
CoinShares believes the upturn in digital assets has been catalyzed by “a reaction to continued expectations of dovish monetary policy in the U.S.”
Last week, the U.S. central bank lowered interest rates for the first time in more than four years, with chair Jerome Powell citing job market concerns and an ease to inflation.
Powell claimed that aggressive action was needed to ensure that the country’s high borrowing costs would not damage its economy when inflation settled.
J.P. Morgan analysts predict two more rate cuts could be expected within 2024, with more coming throughout 2025.
Stage Set for Greentober?
September is closing strong for the crypto market, potentially setting the stage for yet another positive October.
The overall cryptocurrency market cap reached $2.37 trillion on Monday, Sept. 30, growing 112.05% from the year prior.
Bitcoin and a handful of other assets also saw individual growth. Bitcoin began the month at $59,013.49 and closed at $64,462.24, representing a 9% increase. Dogecoin (DOGE) and Ripple (XRP) saw an increase of 21% and 14%, respectively.
October has historically been seen as a growth month for the crypto market, granting it the name of Greentober. The month has seen Bitcoin prices rise eight out of the last thirteen years.
Previous significant October months, 2013 and 2020, were fueled by renewed market optimism and external economic factors, similar to the events of the last thirty days.
With crypto euphoria on the rise and the macroeconomic forecast looking positive, another Greentober could be right around the corner.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
