Ethereum Price Highest Since 2021 Amid Softer Dollar and US Policy Clarity
Main Idea
Ethereum's price surge past $4,300 is driven by a weakening U.S. dollar, expectations of a Federal Reserve rate cut, and positive regulatory developments, including new accounting guidance for stablecoins and crypto allocations in retirement plans.
Key Points
1. Ethereum climbed past $4,300, up more than 43% this month, reaching its highest price since December 2021.
2. A weakening U.S. dollar and expectations of a Federal Reserve rate cut in September have boosted risk appetite, benefiting crypto markets.
3. Regulatory changes include updated accounting guidance allowing certain stablecoins to qualify as cash equivalents and new White House directives authorizing crypto allocations in 401(k) plans.
4. Jamie Coutts, chief crypto analyst at Real Vision, highlighted Ethereum's role alongside AI as a cornerstone of innovation and growth for the U.S. economy.
5. Ethereum's price momentum is further supported by ETF inflows, structural supply reductions, and record transaction volumes, with $5 billion in ETF inflows and $238 billion in July transaction volume.
Description
Ethereum is riding on a softer dollar and rate-cut bets, with U.S. policy clarity, and steady ETF demand tightening exchange supply.
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