Ethereum (ETH) has surged by 5% in the past 24 hours to reach $4,470, its highest level since December 2021.
This cryptocurrency’s upward movement was influenced by the latest Consumer Price Index report released Tuesday morning. The report, which showed mixed results, has prompted market participants to increase their bets on the Federal Reserve potentially reducing interest rates at its upcoming meeting in September.
Notably, the current bullish trend in the crypto market has also been supported by Tom Lee’s Bitmine Immersion Technologies (BMNR), which is aiming to raise as much as $20 billion to invest further in ETH. This company already holds approximately $5 billion worth of Ethereum.
Key Points:
- U.S. inflation data is boosting expectations for a Federal Reserve rate cut this September.
- Spot ETH ETFs recorded daily inflows exceeding $1 billion on Monday, surpassing Bitcoin ETFs.
- Institutional interest in Ethereum remains strong, reflecting its growing importance in asset tokenization and decentralized finance.
As the expectations for a rate cut by the Fed grow, it could create a favorable environment for ETH to continue its ascent, but traders should prepare for potential volatility as well.
