Market traders widely expect the Fed to cut interest rates again at its next meeting on Nov. 7, with bets currently focused on the possibility of a 50 basis point cut, according to the CME Group's FedWatch tool. This expectation reflects the market's demand for economic stimulus and expectations for the Fed's easing policy, especially in the context of insufficient economic recovery. And this potential change in monetary policy would have a particularly significant impact on the cryptocurrency market.

On Thursday, the price of Bitcoin broke through the $65,000 mark, a price surge that may have been driven by the economic stimulus policies launched in the country. As Bitcoin prices climb, investor interest in U.S. spot Bitcoin ETFs has also reignited. Although ETF inflows have been weak or even negative in previous weeks due to volatile Bitcoin prices, market sentiment has improved significantly recently. According to data from Farside Investors, BlackRock’s iShares Bitcoin Trust (IBIT) ushered in large-scale capital inflows on Wednesday, with a single-day injection of US$185 million, a significant increase from US$98.9 million the previous day. increase. This huge inflow marks a return of investor confidence in the Bitcoin market.

In the previous weeks of weak Bitcoin prices, inflows into IBIT funds have been largely flat and sometimes negative, reflecting investors' wait-and-see approach amid uncertain market conditions. However, as Bitcoin prices rebounded strongly, especially after breaking through the $65,000 mark, institutional investors re-increased their allocations to Bitcoin. This not only reflects the market’s optimistic expectations for Bitcoin price increases, but also shows investors’ desire to hedge potential macroeconomic risks through crypto assets.

In addition, as the Federal Reserve gradually eases monetary policy, the market's preference for riskier assets may also continue to rise. Rate-cutting policies typically push up the prices of risk assets, and high-beta assets, including cryptocurrencies, are likely to be the main beneficiaries of inflows. With the gradual implementation of economic stimulus policies, the upward trend in Bitcoin prices is expected to continue, and capital inflows into spot Bitcoin ETFs may also accelerate further.