Even if Bitcoin finds buoyancy following a better-than-expected US inflation report, Ethereum is behind.
The new CPI report has risen by 3% since it landed early on Wednesday, as Bitcoin prices have held major support levels. Meanwhile, Ethereum prices are catching up, with 0.5% gain seen, Coingecko data shows.
said Tracy Jin, vice president of Crypto Exchange MEXC Decryption A successful implementation of the Petra upgrade of Ethereum could significantly enhance the basics of the second largest blockchain.
If the upgrade resolves issues with network throughput and transaction costs, she said it could enhance Ethereum’s appeal and drive ETH demand to gin. Just yesterday, Ethereum Devs achieved finality with Holesky Testnet. Buffett hopes that the Pectra upgrade won’t be too long behind.
“Under favorable conditions, ETH could reach $6,000-$7,000 this year,” Jin said.
However, she was careful to note that major Ethereum upgrades do not have technical difficulties, delays or changes. Jin said there is a “high probability” that ETH could be vulnerable to “increasing volatility” for the next three to six months as developers continue to work towards an upgrade of Pectra.
“In conditions of uncertainty, investors often get refuge in safer assets like the US dollar, which leads to a lower interest in dangerous assets, including cryptocurrencies,” she added.
Despite President Donald Trump’s trade war continuing to spark market uncertainty, the latest US CPI report hopes the Federal Reserve will enact at least one interest rate cut in the first half of 2025.
Typically, if inflation shows signs of cooling, the likelihood of rate reductions can increase and provide a bullish signal for digital assets. And according to the CME Fedwath tool, the market is priced at a 55% chance of a 55% chance of a 55% reduction in charge in June after a CPI print that exceeded expectations this morning.
Even with recent rebounds, institutional investors continue to be pulled back from cryptocurrency. Bitcoin ETF has witnessed $371 million and Ethereum ETFs have witnessed $22 million for each Farside investor data.
“This trend reflects the broader weaknesses of risky assets, and the market is looking for fresh liquidity to rekindle momentum,” said Valentin Fournier, analyst at BRN. Decryption.
Fournier noted that despite bear market sentiment, the stabilization of digital assets such as Bitcoin and Ethereum at key support levels is encouraging.
“In the short term, decisive action from the US government could be a key driver to pushing Bitcoin back to previous history,” Fournier noted.
Edited by Stacy Elliott.
