Digital Asset Treasuries Inflows Surge to $2.6B Post-Fed Rate Cut

In the two weeks following the Federal Reserve's latest rate cut, digital asset treasuries (DATs) for Bitcoin and Ethereum saw an influx of over $2.6 billion, marking a seven-week high in investments. This surge indicates a strong investor confidence in cryptocurrencies amidst broader market uncertainty.

Price Action Details

• Bitcoin's current price stands at $45,320, with a 24-hour change of +3.2%, a 7-day change of +7.8%, and a 30-day change of +12.1%. Ethereum is trading at $2,300, showing a 24-hour increase of +2.5%, a 7-day rise of +6.3%, and a 30-day gain of +9.5%.
• Key support levels for Bitcoin are at $42,000 and $40,000, with resistance at $48,000 and $50,000. Ethereum's support levels are at $2,100 and $2,000, with resistance at $2,400 and $2,500.
• Trading volumes for both assets have significantly increased, with Bitcoin's 24-hour volume at $32 billion, 15% above its 30-day average, and Ethereum's volume at $12 billion, 10% above its average.
• This influx has increased Bitcoin's market cap by $14 billion and Ethereum's by $5 billion over the two-week period.

Driving Factors

• The Federal Reserve's rate cut on December 4, 2025, lowering the rate to 2.25%, is a primary catalyst for the increased investment in DATs as investors seek higher yield opportunities.
• On-chain data from CoinGecko shows a 20% increase in active addresses for both Bitcoin and Ethereum over the past week, reflecting heightened market engagement.
• Significant whale activity was observed, with transactions exceeding $10 million accounting for 35% of Bitcoin's total volume and 25% of Ethereum's, indicating large investors are capitalizing on the market movement.
• The announcement of a new institutional-grade custody solution by Coinbase on December 10, 2025, further bolstered investor confidence in holding digital assets.

Broader Market Context

• Compared to Bitcoin and Ethereum, smaller cryptocurrencies like Cardano and Solana experienced inflows of $100 million and $150 million respectively, showing a broader trend towards digital assets.
• The DeFi sector's total value locked (TVL) increased by 5% to $100 billion, as reported by DefiLlama, indicating a resurgence in decentralized finance activities.
• The Crypto Fear & Greed Index currently stands at 65, suggesting a market sentiment leaning towards greed, which aligns with the increased investments in DATs.
• Analysts at Bloomberg Intelligence predict that the trend of increased DAT inflows will continue into Q1 2026, driven by expectations of further monetary policy easing.