Ether’s recent rally at more than $ 4,700 has been mainly strengthened by the expectations of a federal rate rate in September, which may prove that it is harmful if it does not occur, warning the crypto analysts.
“The main issue today is that the entire market transfer is based on an assumption that the Fed will give the market a cutting rate next month,” Swyftx lead analyst Pav Hundal told Cointelegraph on Thursday, as Ether (Eth) Continue to trade at only 2.80% below 2021 all-time high, According to In CoinMarketCap data.
Participants in the market expect a 95.8% chance that the Fed will reduce rates in September, According to In the tool of watching CME.
Ether “price for perfection”
“We seem to be worth it for perfection, and that is always when you need to be careful,” Hundal added, pointing to the Mounting of ETF ETF flows and stable funding rates.
On Monday, Spot Ether ETF recorded their biggest day of net -flowing ever, with flows across All funds worth $ 1.01 billion. Over the past seven days, the owner has advanced 30%.
Capriole Investments founder and refrigerator Charles Edwards told Cointelegraph that he is fully emerging in Ether and hopes that its price is higher, but admits to an unexpected transition from the Fed may have an impact:
“What if the fed, what if something happened, inflation went up, or, you know, some unknown changes, and they decided not to cut or it, you know, or there’s a major breakout of war, again.”
Edwards explained that it could “cause liquidity to be afraid of which capital is just a kind of firing and the flow stopped.”
While Edwards does not “rule out anything,” he said he remains bullish as long as the institutional demand exceeds Bitcoin’s (Btc) and eth supply. “As there is only one way the price can go, to be honest,” he said.
“I’m open to thinking of all the outcomes, but now, I see it higher,” Edwards said.
Edwards said Ether could “probably be easily doubled” in the coming months if Bitcoin climbed between $ 150,000 and $ 200,000.
“It can see significant appreciation, especially given the backdrop of strong foundations,” he said.
Not all economists are convinced at a rate cut in September
While market participants are tipping for a rate cut in September, not all economists are convinced that this is a finished deal.
On Wednesday, Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, Says“The biggest thing to watch today is … is (Fed officials) who will return to market expectations.”
“If they think the market is wrong, they’ll go out there, because they have a job to do to talk about the market,” he said.
Related: Ether ‘marching’ towards all times high as entrepreneurs predict $ 13k ETH price
Meanwhile, Jeff Schmid, president of the Federal Reserve Bank of Kansas City, suggested The current rate is appropriate.
“In the economy that still shows the momentum, growing business, and inflation is still stuck above our goal, maintaining a moderate restriction of financial policy stance remains timely,” Schmid said.
On Wednesday, the July US CPI print showed inflation holding 2.7% year-on-year, unchanged from June and below the forecast of 2.8%.
Magazine: Scottie Pippen said Michael Saylor warned him about Satoshi Chatter
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
