FX.co ★ Ethereum emerges as new crypto front-runner

There is renewed turbulence in the crypto space! This time, Ethereum has surged ahead, leaving Bitcoin in the dust. The world’s second-largest cryptocurrency is enjoying a decisive win. However, the question arises as to how long it will last.

Ethereum staged a sharp rally after US Federal Reserve Chair Jerome Powell signaled the possibility of a 25-basis-point interest rate cut as early as September. Such a move would make borrowing cheaper for Americans, providing fresh momentum to digital assets.

Jerome Powell emphasized that the Fed must proceed with caution given the stable unemployment rate. According to analysts, the central bank's stance signals impending liquidity tightening in the markets. Under such conditions, investor appetite for high-risk assets such as Ether tends to rise.

Ethereum's robust performance was further bolstered by renewed inflows into spot exchange-traded funds (ETFs) tied to ETH. On August 21, ETH ETFs recorded inflows of $287.60 million, an unprecedented amount following four consecutive days of outflows. By August 22, the total assets in Ether-backed ETFs surpassed $12.12 billion.

The upside momentum has also been driven by corporations moving in for long-term holdings. Over the past month, major companies purchased a total of $1.6 billion worth of ETH, with BitMine, SharpLink, BitDigital, BTCS, and GameSquare among the most active corporate investors.

Previously, Ray Youssef, CEO of crypto service NoOnes, noted that many companies have shifted their focus toward Ethereum. According to the entrepreneur, ETH is now an effective capital preservation tool rather than a speculative token. Market sentiment toward the world’s second-largest cryptocurrency remains largely positive. Arthur Hayes, former CEO of crypto exchange BitMEX, predicts significant short-term gains for ETH. He believes that it could trade within a range of $10,000 to $20,000 by the end of the current cycle.