Bitcoin climbed to a one-month high on Thursday, extending gains after the Federal Reserve’s first rate cut of 2025.
The Fed lowered rates by 25bp as anticipated, with projections pointing to more interest rate cuts this year. A softer monetary policy could fuel more risk appetite and support cryptocurrencies.
However, ETF flows highlighted a note of caution. US spot Bitcoin ETFs recorded USD 51 million in outflows on Wednesday, the first in two weeks, while Ethereum products saw redemptions for two days in a row.
Should the trend continue, it may act as a counterweight to the bullish macro backdrop and limit further upside.
Liquidations presented a mixed but slightly supportive picture. Over the past 24 hours, forced closures saw short position liquidations outpacing their long counterparts. The balance suggests traders are cautiously leaning bullish.
On the regulatory front, the SEC approved a new framework to streamline the listing of commodity-based ETPs across major US exchanges, including crypto-linked vehicles. While the process will remain selective, the decision signals a growing acknowledgement of digital assets. This could lift investor sentiment over time and favour Bitcoin.
