Among cryptocurrency investors is really noticeable positivity. For example, spot Bitcoin-ETFs in the U.S. raised $201.99 million on Monday.

Inflows and outflows from spot Bitcoin-ETFs in the United States

This is the eighth positive result in a row. BTC exchange-traded funds have seen net inflows of $753 million over this timeframe, while at the same time the cryptocurrency’s exchange rate has jumped from $58,690 to today’s $62,740.

The sentiment of Bitcoin enthusiasts, meanwhile, is once again rated as “neutral”. Last week they were characterised as “fear”.

An up-to-date measure of the Bitcoin Investors’ Fear and Greed Index

What’s going to happen to the Bitcoin exchange rate?

The first reason to remain optimistic is Fed Chairman Jerome Powell’s public speech on Friday at the Fed’s Jackson Hole symposium.

At the time, Powell said that “the time has come for a change in policy” by the Federal Reserve, which has struggled over the past few years to bring annualised inflation down to 2 per cent.

Meanwhile, the latest Consumer Price Index data from mid-August showed it was at 2.9 per cent, confirming that bankers’ actions were definitely effective.

Head of the US Federal Reserve Jerome Powell

In general, Powell’s speech was “unambiguously dovish”, i.e. indicating the bankers’ willingness to ease restrictions in the economy. The markets took these words as a signal for the forthcoming reduction of the base lending rate during the next meeting of the Federal Open Market Committee (FOMC) on 18 September.

The lower this rate is, the easier it will be for traders and investors to borrow capital for investments and other activities. The process of lowering the benchmark interest rate traditionally leads to the activation of economic agents, who get better opportunities for risks.

Changes in the base interest rate in the USA

It is also worth remembering the presidential election, one of the favourites for which is Donald Trump. The politician has been publicly supporting the coin industry for months, so his victory could have a major impact on the regulation of digital assets and the attractiveness of the US for blockchain developers and entrepreneurs in general.

Right now, Trump’s odds of winning on the Polymarket betting site are 1 per cent ahead of Kamala Harris’ corresponding figure.

Actual odds of Trump winning the US presidential election from the Polymarket platform

In a fresh interview with Decrypt representatives, Merkle Tree Capital Chief Investment Officer Ryan McMillin mentioned another positive trigger for the crypto market. We’re talking about optimistic labour market statistics.

Here is a quote on the subject.

The Bureau of Labour Statistics revised up 818,000 jobs, which is the new jobs that were reported in the non-farm payrolls reports in the previous months. This statistic was a key factor supporting the “overheated market” hypothesis, but it turned out that the assumptions were too pessimistic.

In addition, historically, September is one of the weakest months for Bitcoin in terms of returns. However, McMillin is confident that this year the negative trend will not be repeated.

In addition, since the end of February, the rate of the main cryptocurrency has been fluctuating between the levels of 49 and 73 thousand dollars after the decision of the SEC to allow the listing of Bitcoin-ETF. A breakthrough of this range upwards will mean a new round of a large-scale bullrun – yet in this case, all investors will be in profit, and the topic of cryptocurrencies will again attract a new audience.

Hourly chart of the Bitcoin BTC rate on the Binance exchange

Positive predictions about Bitcoin are shared by analysts of the QCP Capital platform. In their latest published report, they stated that BTC has returned “to the familiar range of pro-trading”.

At the same time, the volume of coin sales by spot exchange-traded funds is gradually declining, and the impact of other negative factors on the market is fading.

According to experts, the jump in the price of cryptocurrency at the end of last week was caused by demand from mainly individual investors – and this is a clear sign of the interest of the general public in digital assets.

Alas, Bitcoin’s image is still suffering due to the actions of those who wilfully violate local crypto regulation laws in various countries. On Sunday, police and authorities in Thailand announced a raid on an illegal mining farm in a town in Ratchaburi province. After frequent reports of power outages in neighbourhoods nearby over the past few weeks, police still had to take drastic measures, The Block notes.

According to a local police source, the power outages began around mid-July – apparently when the farm began operating at full capacity. Thai authorities said that the owner of the crypto farm paid very little compared to the large amount of electricity consumed, but the culprit was not arrested as a result of the raid.

Note that Southeast Asian countries have become popular destinations for bitcoin miners. They are attracted by affordable electricity, skilled labour and developed infrastructure for such business. This is especially true after China banned all cryptocurrency mining operations in 2021.

Cryptocurrency miner


It seems that the current development of the situation in the global economy could be very favourable for Bitcoin and other cryptocurrencies. Still, as the base interest rate decreases, financial loans will become more and more affordable, because of which there will be more reasons to get money and invest it. The main thing is that the U.S. Federal Reserve should stick to its new chosen policy for a serious period of time.