To The Moon

As we have heard the Fed announced the 50 basis point last night and Bitcoin have reacted with a price rise to $62,000 at time of this writing,

The move to lower rates could boost cryptocurrency markets in the long term, according to analysts. They say a decline in prices is also possible in the short term, depending on how big the cut is. The Federal Reserve interest rate is currently at 5.25% to 5.50%.

Now a 50 basis point cut could be seen to trigger short-term bearish sentiment, as it could signal the Fed acting aggressively to stave off a recession

Liquidity Building At $61,300 – $61,400 range

I am expecting lot of Bitcoin buying and selling to occur as Fed has announced the rate cut. When investors await the interest rates, we could see liquidity for the $61,300 – $61,400 range.

But the $56,900 – $57,300 zone is building liquidity faster and contains a larger amount. This might explain why Bitcoin went up to $62,000 now.

So the question now is which crypto stock and bitcoin etf we can look at when Bitcoin begin its pump.

Spot Bitcoin ETF Total Net Flow Signs Of Increasing

As I have been monitoring the total net flows of the spot bitcoin ETF, we can see that there have been a signal of increasing fund flow into Spot BTC ETF, and this should continue to increase as Bitcoin continue its pump because of the rate cut.

BITO Have A Nice Correlation With BTC

If I were to consider which Spot Bitcoin ETF to go for, I would think it is $ProShares Bitcoin Strategy ETF (BITO)$ because it is having a nice correlation with BTC.

As Bitcoin continue its pump to the upside, I would expect this ETF to continue as well.

COIN Moving In Tandem With Bitcoin

Another crypto stock I would be interested in is $Coinbase Global, Inc.(COIN)$ because I am monitoring the relationship and seem like COIN would be moving in tandem with Bitcoin as seen in the chart below especially now that we have heard the confirmation of the rate cut.

So I would think it might be a potential crypto stocks we can take advantage of.

Summary

While the uncertainty in Fed policy is compounded by technical factors in the crypto market, the number of retail investors expecting the Bitcoin prices does play an important part as we need retail participation to help to increase the fund flow into Bitcoin.

We could be seeing lot of buying and selling which I will share later on whether there is a significant number of new retail accounts which might signal more fund flow into Bitcoin.

Appreciate if you could share your thoughts in the comment section whether you think Bitcoin continuing its pump would help crypto stocks and spot bitcoin etf?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.