Investing.com — Bitcoin rose Wednesday on expectations of a Federal Reserve interest rate cut, while sentiment was also boosted by data showing improved capital flows into exchange-traded funds.

rose 3.8% to $60,469.1 by 00:43 ET (04:43 GMT), after trading between $50,000 and $60,000 for most of September.

Cryptocurrency prices also rose as markets braced for lower US interest rates, which should benefit speculative risk assets.

Bitcoin ETFs See Inflows After Two Weeks of Outflows

Data this week showed that BlackRock’s iShares Bitcoin Trust saw its first day of inflows in two weeks on Monday, breaking a streak of outflows that has been ongoing since mid-August.

The inflow of funds marked a change in sentiment after uncertainty over the US presidential election, interest rates and a potential recession weighed heavily on cryptocurrency prices around the world.

However, trading volumes in U.S. bitcoin ETFs remained well below the peaks seen earlier this year, and enthusiasm for the funds has waned, especially among retail investors.

Microstrategy buys more Bitcoin to issue more debt

Software company MicroStrategy Incorporated (NASDAQ:) bought about $1.1 billion worth of bitcoin between Aug. 6 and Sept. 12, the company disclosed last week, solidifying its position as the largest corporate holder of the token. The company holds about $9.5 billion worth of bitcoin.

The company said this week it plans to raise about $700 million through a private placement of convertible bonds due in 2028. The funds will be used to buy back prior debt obligations and purchase more bitcoin.

Cryptocurrency price today: altcoins rising, Fed interest rate cut expected

Cryptocurrency prices rose in anticipation of a widely expected interest rate cut by the Federal Reserve on Wednesday.

The world’s No. 2 cryptocurrency Ether rose 1.4% to $2,319.94, while altcoins, , (AS:) traded flat to low.

Among meme tokens, the boost was 0.2%.

The Fed is widely expected to cut interest rates at the end of its meeting on Wednesday. While markets were initially split between bets for a 25-basis-point or 50-basis-point cut, CME Fedwatch has shown traders becoming more biased toward a larger cut in recent sessions.

Lower interest rates free up liquidity that can then be invested in speculative risk assets such as cryptocurrencies.