When exchange-traded products record strong performances with staggering inflows, it usually boosts investor’s confidence, and if this coincides with the Fed rate reduction, it would also affect the market

How? Well, let's highlight them 👇

✅ Investors will start taking more risks.

✅ The reason is because the cuts will make borrowing cheaper, hence money will flow into risk assets like Bitcoin leading to increase in global liquidity.

✅ As a result, BTC will strengthen against the dollar as a store of value.

✅ Coupled with ETF inflows, market confidence will increase which could spill over to ETH and other cryptos including your memecoin bags through increased liquidity and sentiment.

Finally, there are caveats though;

💥Inflation could pose problems because if it is around say, 3% and if it persists above the Feds target, it might affect the inflows of liquidity into crypto.

💥Inflation could cause treasury yields to rise thereby diverting the liquidity from investors to fixed-income assets instead of crypto, thereby offsetting our expected gains.😂😂

Finally, If ETF inflows that have been supporting the price of BTC it could flow out thereby triggering short term volatility in the market.