Crypto markets continue to show growth thanks to political support, expectations of Federal Reserve rate cuts, and significant ETF inflows.
Demand for ETFs Boosts Ethereum
Amid high demand, Ethereum's price rose nearly 30% over the week, reaching significant levels. On Tuesday, Ethereum-linked ETFs recorded $520 million in inflows, marking a record for the asset's history. An increase in Ethereum's volatility is expected to potentially lead to higher price fluctuations in the near future.
Bitcoin Maintains Strong Direction
Bitcoin is trading at nearly $119,000, showing stable demand due to market changes. The price reached a record value near $122,000, with potential targets at $135,000–$138,000. Political signals favoring interest in cryptocurrencies also contribute to a positive market sentiment.
Macro Changes and Policy Perspective
The anticipated 50 basis point cut by the Federal Reserve in September further boosts gains in crypto markets. Low interest rates create conditions for capital to flow into high-growth and alternative asset classes. These macro changes, combined with strong ETF inflows, create a favorable backdrop for both Bitcoin and Ethereum.
The outlook for the crypto markets remains positive, with expectations of further growth for both Ethereum and Bitcoin supported by significant inflows and policy backing.
