New report: Digital asset investment funds took in hundreds of millions of dollars last week as investors felt confident after the Federal Reserve reduced interest rates.
CoinShares reported Monday that speculators spent $321 million in Bitcoin and other key cryptocurrencies and tokens funds.
A favorable influx was “likely driven” by Federal Open Market Committee statements last week, the business added.
Traders rushed back into “risk-on” assets after Federal Reserve Chair Jerome Powell reduced interest rates by 50 basis points last Wednesday.
Crypto and U.S. equities are volatile and perform better in low-interest-rate environments.
The majority of investors deposited $284 million into Bitcoin funds, according to CoinShares.
Investors in the U.S. are flocking to Bitcoin exchange-traded funds (ETFs) legalized in January for exposure to the biggest cryptocurrency.
Bitcoin is now $63,218 per coin, up 9% in seven days, according to CoinGecko.