Ethereum Price Soars 10% as Fed Loosens Monetary Policy

• Ethereum price has been trending upwards over the past week due to improved market sentiment and expectations of looser monetary policy by the Federal Reserve.
• The cryptocurrency has gained 10% in the last week, making it one of the best performing assets in the top 10 by market cap.
• Positive developments in the futures and options sectors have added to the bullish momentum in the Ethereum market.

The Ethereum price has been on the rise over the past week as sentiment in the crypto market continues to improve. The second crypto by market capitalization has seen its price increase by 10%, making it one of the best performing assets in the top 10 by market capitalization. The rally is largely due to macroeconomic conditions and expectations of looser monetary policy from the Federal Reserve.

The current market sentiment is largely based on widespread reports of an economic recession. These reports have caused investors to expect the US Federal Reserve (Fed) to loosen its monetary policy in order to contain the highest inflation recorded in decades. So far, the Fed has hiked interest rates in an attempt to put a hold on the situation. However, if conditions continue to deteriorate, the market believes that the Fed will need to backtrack on its policies, allowing Ethereum and other risk assets to rally.

Today, the Fed will provide further insights on its next steps; if it loosens its policy, the Ethereum price is likely to continue its bullish trend. This sentiment has also been reflected in the futures and options sectors, as Blofin has reported a shift in sentiment for Q1, 2023, compared to Q4, 2022.

Overall, the Ethereum market is continuing to benefit from improved market sentiment and expectations of looser monetary policy from the Federal Reserve. Positive developments in the futures and options sector have added to the bullish momentum, and the Ethereum price could extend its gains if these macroeconomic conditions continue to support the rally. Furthermore, the Fed’s announcement today could provide further insights on the crypto market’s future direction.

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