Ethereum Price Hits $4,700 as Institutional Demand Surges and Fed Rate Cut Bets Rise

Ethereum (ETH) has extended its winning streak, soaring 5% in the past 24 hours to reach $4,700, its highest level since December 2021. The rally comes as a combination of macroeconomic optimism, record inflows into spot ether ETFs, and aggressive institutional buying drives renewed momentum in the world’s second-largest cryptocurrency.

Macroeconomic Tailwinds: CPI Data and Rate Cut Expectations

Tuesday morning’s Consumer Price Index (CPI) report provided the initial spark for the broader crypto market. While the data revealed inflation remains above the Federal Reserve’s 2% target, certain components showed signs of easing price pressures.

This mixed inflation picture has prompted traders to increase bets that the Federal Reserve could cut interest rates at its September meeting — a move that would typically favor risk assets, including cryptocurrencies.

According to CME FedWatch data, market pricing for a September rate cut jumped to over 70% probability following the CPI release. For Ethereum, lower interest rates would not only improve risk sentiment but also make its yield-bearing DeFi ecosystem more attractive compared to traditional bonds.

Institutional Buying Frenzy: Bitmine Immersion’s $20 Billion Plan

Fueling Ethereum’s rally even further is the expanding trend of corporate treasury crypto allocations. In a bold move, Bitmine Immersion Technologies (BMNR) — led by well-known market strategist Tom Lee — disclosed plans to raise up to $20 billion in fresh capital to purchase ETH.

Already holding approximately $5 billion worth of Ethereum, BMNR’s new capital raise marks one of the largest single-entity accumulation strategies in cryptocurrency history.

Analysts say this aggressive stance mirrors the Bitcoin corporate treasury playbook pioneered by companies like MicroStrategy, but with a sharper focus on Ethereum’s utility-driven network and its evolving role in institutional finance.

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