Digital Asset Inflows Surge to $1.2B as Markets Anticipate More US Rate Cuts 

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.

About the Author

Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.

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