Promoted by expectations of feat cuts in the US and a renewed institutional interest, Ethereum exceeds US $ 4,300 and reaches levels that were not seen since 2021, while Bitcoin has consolidated over US $121,000.
The market of cryptocurrencies The week began on Monday, this Monday, August 11, promoted by the expectations of feat cuts in the United States and a renewed investment appetite. Bitcoin (BTC) advances 1.7% and is located around US $120,500, according to Binance, after having touched the US $122,300 in the last 24 hours.
Ethereum (eth), the main market altcoin, consolidates its weekly rally of almost 20% and exceeded US $ 4,300, reaching levels that were not seen since 2021. Its historical maximum, registered on November 10 of that year, was US $ 478.26. However, he cut the rise and is located at US $ 4,180.
The rest of the cryptocurrencies operate with majority of casualties of up to 2.11% headed by Hedera, Dogecoin (-1.5%) and Avalanche (-1.4%). The increases are led by Litecoin (4.2%), Bitcoin Cash (3.5%) and Hyperliquid (2.1%).
Why Ethereum went up
According to Augustine Fan, Head of Analysis of Signalplus, the implicit volatility of BTC remains close to historical minimums, while ETH increased significantly. “A month ago, the market granted only 5% probability that ETH reached US $ 4,500 in August; today, the price has already exceeded these expectations,” he said.
Optimism is based on the growing probability that Federal Reserve begins to lower the fees in September. Weak macroeconomic data in the US and the attempts of President Donald Trump for forming a Fed aligned with his vision Bets increased by up to three cuts before the end of the year. ING analysts project that the agency could carry the reference rate to the range of 3.75% -3.5% towards December.
He Market awaits the July inflation data carefullywhich will be published on Tuesday. A reading lower than expected would reinforce the expectation of cuts at the September meeting, while a larger figure could strengthen the most restrictive position of some members of the Fed.
Institutional interest in cryptocurrencies is renewed
In parallel, The institutional interest in cryptoactive continues to increaseas the latest entries in the ETFs in the cash of BTC and ETH show. Among the most outstanding operations, Harvard invested US $ 116 million in the ETF of Bitcoin de Ishares (Blackrock), what analysts interpret as a long -term trust signal and an additional support for prices in correction periods.
Analysts warn that a risk factor for this rally is the commercial war between the US and China. Tomorrow expires the deadline to reach a new tariff agreement or extend the current truce for 90 days, preventing mutual tariffs from exceeding 100%.
In the geopolitical plane, Trump confirmed a meeting with the Russian president, Vladimir Putin, On August 15 in Alaska, with the aim of looking for a fire or an agreement to end the conflict in Ukraine. These gestures, although still uncertain, have contributed to reducing the feeling of risk in the markets.
“Together, the panorama for cryptocurrencies remains favorable in the short and medium term, but given market sensitivity to political and geopolitical factors, it is key that investors manage risk with discipline and monitor institutional flows to consolidate the profits obtained,” concluded Linh Tran, XS analyst.
Source: Ambito
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