A new cryptocurrency whale has purchased $1.34 billion worth of Ethereum in the past eight days, surpassing the record inflows into the US spot Ethereum ETF and fueling speculation about the price direction of the token.
According to the crypto intelligence platform Lookonchain, this whale purchased 312,052 Ethereum across 10 newly created wallets.
The whale bought $300 million more than the record inflow amount of the US spot Ethereum exchange-traded fund (ETF). The ETF set a record for a single-day net inflow of $1 billion on Monday.
Analysts say this multi-billion dollar acquisition may help Ethereum approach its previous all-time high of $4,890. With demand surging, investors are waiting for this week's Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which could influence the Federal Reserve's interest rate decision on September 17.
89% of investors expect a rate cut in September.
CPI and PPI reports are 'key' in shaping monetary policy expectations, as inflation data that exceeds expectations could 'weaken' investor interest and 'suppress' the current cryptocurrency rally. According to Javier Rodriguez-Alarcón, chief investment officer at the crypto trading and asset management platform XBTO, this rally aligns with typical Ethereum behavior, but may pause or consolidate without new stimulus factors.
Nevertheless, short-term Ethereum holders are actively taking profits, indicating that this group anticipates a pullback.
According to the latest estimates from CME Group's FedWatch tool, the market expects an 82% probability that the Federal Reserve will keep interest rates unchanged at the next Federal Open Market Committee meeting on September 17.
