The cryptocurrency market is booming thanks to political momentum, expectations of Fed rate cuts, and large capital inflows into Ethereum ETF.
Strong ETH growth has triggered an altcoin explosion, along with ETH options contracts approaching near-record levels, signaling significant upcoming volatility.
- Cryptocurrencies rise in price due to positive signals from the US government and Ethereum ETF.
- Bitcoin remains stable around 120,000 USD, with altcoins rising in line with ETH's momentum.
- Expectations of Fed rate cuts could drive ETH and Bitcoin to new peaks.
Why is the cryptocurrency market rising strongly today?
The growth trend stems from US President Donald Trump's order to consider including cryptocurrencies in 401(k) retirement plans, opening up opportunities for significant demand from retirement funds.
On June 23, investment capital into ETH-related ETFs reached 520 million USD, heading towards a 2 billion USD record this week, showing strong interest from institutional investors.
How is Bitcoin stable while altcoins rise following Ethereum?
Bitcoin maintains around 120,000 USD, while prominent altcoins like Solana, BNB, XRP, Dogecoin, and Cardano all increased 4-12% driven by Ethereum's momentum.
Notably, this altcoin rise is pushing Bitcoin upward, different from previous trends, demonstrating ETH's growing influence in the cryptocurrency ecosystem.
How do traders view ETH's short-term potential?
ETH's short-term volatility has increased significantly compared to Bitcoin, indicating market expectations of major price fluctuations in the near future.
Ethereum has touched the important threshold of 4,000 USD (equivalent to 4,650 USD currently), demonstrating the rapid volatility of the cryptocurrency market.
Michael van de Poppe, cryptocurrency market analyst, 2024
The combination of political support, expectations of Fed rate cuts, and large ETF capital flows makes ETH the center of investor attraction.
How could rate cuts boost the upward trend?
Finance Minister Scott Bessent suggests the Fed might cut rates by 50 basis points in September, easing macroeconomic pressure and creating conditions for cryptocurrency price increases.
If this occurs, Bitcoin could challenge the 135,000-138,000 USD threshold, while ETH has an opportunity to approach the ATH above 4,800 USD, consolidating market growth.
The foundation for the next cryptocurrency explosion is now established as political and economic factors positively interact.
Scott Bessent, US Finance Minister, 2024
Frequently Asked Questions
What are the main reasons for the recent cryptocurrency market surge?
Positive political signals from the US, expectations of Fed rate cuts, and large capital inflows into Ethereum ETF are creating growth momentum.
Can Bitcoin maintain its growth momentum compared to altcoins?
Bitcoin remains stable around 120,000 USD, with altcoins rising along with ETH supporting Bitcoin's upward movement.
How does ETH price volatility affect traders?
High volatility helps traders expect short-term profit opportunities and more significant price fluctuations.
How do Fed rate cuts impact cryptocurrencies?
Rate cuts typically help reduce economic pressure, creating a favorable environment for cryptocurrency price increases and investment attraction.
What does the capital inflow into Ethereum ETF mean for the market?
Large capital into ETFs demonstrates increased institutional investment confidence, contributing to strong ETH and overall market growth.