ETH Fails to Ride Bitcoin's Fed Bounce
Ethereum's price failed to follow Bitcoin's significant gain of 4.28% on Thursday, trading at $2,407.72 and up just 0.66%. This marks a notable divergence from the usual correlation between the two assets, with Ethereum barely moving despite the market's overall risk-on sentiment.
Federal Reserve Governor Christopher Waller's comments on disinflationary signs and potential interest rate stability in September likely contributed to this market reaction. The FedWatch probability of a September hike collapsed to 48% from nearly 70%, while the dollar index broke below 99, and high-duration risk assets like gold saw significant gains.
However, Ethereum's performance was an outlier among major cryptocurrencies, with Bitcoin, BNB, XRP, and Solana all posting gains. The price action is consistent with historical patterns in crypto market cycles, where capital rotates into Bitcoin first and Ethereum outperforms later on.