Ethereum breaks $4,700 amid expectations for interest rate cuts in September
In a lightning move that left traders and analysts astonished, Bitcoin (BTC) recorded a $2,000 rise in just 15 minutes, once again reaching the $122,000 zone. Volatility intensified in the market, with trading volumes surging on global exchanges.
The rally was not exclusive to Bitcoin: Ethereum (ETH) also had its moment of glory, surpassing $4,700 today, its highest level in months.
📈 What is driving the rally?
Analysts point out that investors may already be discounting a possible interest rate cut by the Federal Reserve in September. An environment of lower rates tends to favor risk assets, such as cryptocurrencies, as it encourages liquidity and the search for higher returns.
"The market is reacting in anticipation. The narrative of expansive monetary policy is strengthening the appetite for crypto assets," noted a senior analyst from Binance Research.
🔍 Technical outlook
BTC: With the breakout of $120,000, the next resistance level is near $125,000, while the key support remains around $118,500.
ETH: If it holds $4,700 as support, it could aim for the psychological zone of $5,000.
🏁 Conclusion
The combination of macroeconomic factors and the momentum of the crypto market has reignited euphoria among traders. However, experts remind us that volatility remains high and recommend caution when taking positions.