Yesterday was truly thrilling... Because of Powell's remarks, it directly 'blew up'.
Powell delivered a significant 'dovish' speech, suggesting that the possibility of interest rate cuts in September has greatly increased. As soon as this news came out, market expectations were instantly heightened, and dollar assets surged across the board. Ethereum led the charge, with an astonishing 14% increase within a few hours, reaching $4887, directly setting a historic high in its 11-year existence, with a market value exceeding $586 billion, ranking 25th among global technology companies by total market capitalization, leaving well-known companies like Mastercard and Netflix behind. It's really crazy!
Looking back at Ethereum's performance this year, from the low point in April to now, the price has rebounded over 250%, largely due to the continuous influx of institutional funds. Since the U.S. spot Ethereum ETF was approved in July 2024, the assets under management have exceeded $20 billion, and recently funds have started to flow in crazily.
Let's take another look at why Powell's speech had such a significant impact on Ethereum this time. If the Federal Reserve cuts interest rates, money in the market will be 'cheaper', and people will be more willing to invest in risk assets like Ethereum. Moreover, interest rate cuts often indicate market concerns about economic prospects, prompting investors to seek other channels for preserving and increasing value, making Ethereum a popular choice.
From the market data, it can also be seen that during this round of Ethereum's rise, the bears are really in a panic... I looked at the data from Coinglass, and it's really disheartening.
Although Ethereum is currently on a strong upward trend, no one can predict what will happen in the future (before interest rate cuts). Powell's speech was just a trigger; future Federal Reserve policies, economic data, and regulatory dynamics will all affect the price of Ethereum. If anyone wants to enter the market, they must be cautious and even more cautious!
