The recent rally of Ether is being largely extended to a large extent from the expectations of the US federal rate cut in September, which if it does not do the event, the crypto analysts have warned.
“The main issue is just that the entire market move is based on an assumption that Fed will be cut to the market in the next month,” Swaftx’s chief analyst Pav Hunder told the Coinlagraph on Thursday, because Ether (Ath) continues to trade at only 2.80% only below its 2021 time of 2021, According For coinmarketcap data.
Market participants are 95.8% likely to cut rates in September, According For CME Watch Tool.
Ether “price for perfection”
Hundal said, “It seems that we are at a price for perfection, and this is always when you need to be the most careful,” said Hundal, pointing to the growing ether ETF flow and stable funding rates.
On Monday, Spot Ether ETF recorded its greatest day of net flow, with a total number of $ 1.01 billion in all funds. In the last seven days, the property has increased by 30%.
Charles Edwards, founder of Capriole Investments and Founder of Ref, said cointelegraph he is very fast on ether and hopes that its price will be higher, but an unexpected step with the fed agrees that it may have an impact:
“What if fed, what if something happens, inflation increases, or, you know, some unknown changes, and they do not cut or decide it, you know, or a major war breakout, again.”
Edwards states that this may “cause liquidity, where the capital simply freezes and stops.”
While Edwards “will not tell anything,” he says that he lives faster until institutional demand exceeds the supply of bitcoin (BTC) and ETH. He said, “Like there is only one way, to be honest,” he said.
Edwards said, “I am open to all the results, but right now, I am watching it too much.”
Edwards stated that Ether “may be quite easily doubled” in the coming months if bitcoin climbs between $ 150,000 and $ 200,000.
“It can definitely see significant praise, especially looking at the background of strong basic things,” he said.
Not all economists are convinced about the rate of cut in September
While the market participants are tipping for cuts in September, not all economists are sure that this is a deal.
On Wednesday, Ellen Zentner, Chief Economic Strategist in Morgan Stanley Wealth Management, Said“Now the biggest thing to see is … (Fed officials) are going to push back to the market expectations.”
“If they think the market is wrong, they will go there, because they have got a job to talk in the market,” he said.
Connected: Ether towards ‘marching’ all-time high, because traders predict $ 13k eth value
Meanwhile, Jeff Schmid, Chairman of Federal Reserve Bank of Canus City, suggested The current rate is appropriate.
“The economy still shows speed, trade optimism increases, and inflation is still stuck up to our purpose, remains suitable for time to maintain a minor restrictive monetary policy trend,” Schmit said.
On Wednesday, the July US CPI print showed 2.7% year-on-year inflation, unchanged since June and below the forecast of 2.8%.
magazine: Scotty Pippene says
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