- Ethereum’s value lags behind rival cryptocurrencies
- If Ethereum follows Bitcoin, a brand new yearly excessive is likely to be within the playing cards
- Subsequent week’s Federal Reserve assembly is essential for the US greenback
The cryptocurrency market bounced strongly in 2023. Following a disappointing 2022, bulls are again as Bitcoin and different main cryptocurrencies rallied exhausting.
For instance, Bitcoin gained 81.86% YTD whereas Ripple rose as a lot as 137.53%. In contrast with the 2, one may say that Ethereum value lags, up “solely” +58.37% this yr.
In different markets, such returns are deemed actually inconceivable. Not within the cryptocurrency market, although, the place fortunes are made (and misplaced) virtually in a single day.
So can one purchase Ethereum due to the shortage of momentum in comparison with its friends? Furthermore, following Bitcoin’s steps, will Ethereum make a brand new excessive for the yr?
Federal Reserve to hike the funds price once more subsequent week
Subsequent week shall be decisive for the quick and medium-term perspective on the US greenback. The Federal Reserve of the US is because of set the financial coverage subsequent Wednesday, and the chance of a hike is near 100%.
By no means in historical past did the Fed ignore what the market has already priced in, so a price hike is definite.
However the Fed could simply flip the tables round through the press convention that follows the FOMC Assertion.
If the Fed Chair, Jerome Powell, hints on the terminal price being hit, then the market will attempt to anticipate when the primary price lower shall be delivered.
Therefore, whereas a price hike subsequent week is hawkish the greenback, the Fed could ship a dovish message through the press convention. If that’s the case, count on Ethereum to make a brand new excessive for the yr.