Meanwhile, analysts expect a second 25bps cut during this month’s FOMC meeting, while market sentiment has improved significantly.
The Fear and Greed Index reflects this, as this key sentiment gauge recovered from a recent low of 34 (Fear) to 62 (Greed) at the time of writing.
A weaker U.S. dollar resulting from the ongoing U.S. government shutdown has also benefited cryptos lately. As long as this situation persists, investors will likely park their capital on BTC as a safe harbor while this ‘impasse’ is resolved.
Since the year started, the U.S. Dollar Index has seen its value drop by 9% and has moved below the 100 psychological threshold, reflecting the strength of the bearish momentum that the North American currency is experiencing.
Bitcoin ETFs Book a $1.2 Billion Single-Day Inflow
What is even more surprising is that investors have been pouring billions into Bitcoin-linked exchange-traded funds (ETFs).
On October 6 alone, these vehicles brought in $1.2 billion. Meanwhile, since the month started, BTC ETFs have received an eye-popping total of $4.4 billion in net inflows, meaning an 8% jump in the funds’ total assets under management (AUM).