Ether Expected to Surpass $5,000 as BTC Aims for Record Highs
Cryptocurrency Market Update
Cryptocurrencies experienced a surge following Federal Reserve President Jerome Powell's dovish remarks at the Jackson Hole economic symposium, leading to asset managers predicting new all-time highs for bitcoin, ether, and select altcoins.
Key Points from Powell's Speech
- Powell indicated potential benefits for the labor market from lower borrowing costs.
- The benchmark interest rate has been held steady at 4.25% for eight months.
- He acknowledged rising downside risks to employment.
- The probability of a September Fed rate cut increased to 90% after his speech.
Analyst Predictions
- Monarq Asset Management predicts ether could exceed $5,000 soon.
- Ether gained nearly 10% in 24 hours, reaching over $4,800.
- Bitcoin traded near $115,600, down from an overnight high of $117,400.
- Demand for call options on ether is increasing, while sentiment around bitcoin options is less bullish.
- Whale wallet accumulation indicates strong demand for bitcoin around the $113k level.
Market Outlook
- Expectations are for continued rate cuts beyond September, which may support momentum into year-end.
- Focus remains on ETF flows for bitcoin and ether as indicators of market movement.
- Projects like Base, Monad, Story, SUI, and the SOL ecosystem are highlighted as areas of interest.
Potential Risks
- Caution is advised regarding corporate treasury cryptocurrency adoption and equity market volatility.
- Concerns about the quality of digital asset treasury deals have emerged.
- Overheating in equity markets and macroeconomic or geopolitical shocks pose additional risks.