The price of Ethereum (ETH) reached a record-high of $4,885 on the exchange following positive remarks from U.S. Federal Reserve Chair Jerome Powell regarding a potential interest rate cut. Ethereum distinguished itself amid broader financial market gains.
Impact of Fed Announcements on Markets
Jerome Powell’s speech, indicating the potential for a rate cut in September, was welcomed positively by investors. Despite diminished hopes in preceding days, Powell’s remarks generated a powerful reaction in global markets.
Bitcoin also showed gains but was limited to a 4% increase compared to Ethereum. The CoinDesk 20 Index, which tracks a broader cryptocurrency market index, rose by 9% during the same period. The short-term optimism was especially pronounced in certain assets.
The Role of Institutional Investments
Ethereum’s rise this year is attributed not just to macroeconomic factors but also to increased institutional interest. Particularly, large corporations beginning to accumulate Ethereum have reinforced the network’s foundation.
Institutions like ETHZilla, backed by investor Peter Thiel, incorporating Ethereum into their portfolios lifted demand in this area. Experts suggest that Ethereum may become the most favored blockchain on Wall Street in the future.
As a result of these developments, Ethereum has increased by approximately 45% since the beginning of the year, while Bitcoin’s growth remained at 25%.
Movements in Associated Crypto Assets
The rise of Ethereum has also benefited other tokens within the same ecosystem, such as Lido (LDO) and Ethena (ENA), which also saw increases exceeding 10%.
Experts predict continued activity in Ethereum and its related tokens due to the potential Fed rate cut and institutional interest. However, the continuation of these trends will be directly tied to the global economic environment and future macroeconomic decisions.
In summary, Ethereum shows significant growth driven not only by macroeconomic changes but also by institutional interest, which leads to price increases in associated assets.
