Ether's Rally and Fed Rate Cut Expectations

Ether's recent surge past $4,700 is primarily driven by anticipations of a US federal rate cut in September, a scenario that could be detrimental if it doesn't materialize, according to crypto analysts. Swyftx's lead analyst, Pav Hundal, noted that the market's current momentum hinges on the assumption of a rate cut, with a 95.8% probability indicated by the CME Watch Tool. He cautioned that the market appears overly optimistic, especially with significant inflows into Ether ETFs, which saw a record $1.01 billion in net inflows recently. Capriole Investments' Charles Edwards remains bullish on Ether, suggesting it could double if Bitcoin reaches between $150,000 and $200,000, but acknowledges that an unexpected Fed decision could disrupt liquidity. While many expect a rate cut, not all economists agree, with Morgan Stanley's Ellen Zentner highlighting the need for Fed officials to manage market expectations. The current inflation rate stands at 2.7%, unchanged from June, indicating a complex economic landscape. Read more AI-generated news on: https://app.chaingpt.org/news