- BTC-USD
+0.55% - ETH-USD
+2.38%
What happened:Bitcoin(BTC-USD) jumped nearly 2% on Wednesday to hover above $65,000 per token, while ethereum (ETH-USD) rose 3%.
What’s behind the move:The bounce comes as the outlook for crypto improved this week after June’s Consumer Price Index came in cooler than expected, reducing concerns that the Federal Reserve may hike rates, a move that would impact liquidity conditions.
“I continue to believe the tactical backdrop for crypto is improving, with ETH increasingly standing out as one of the more attractive ways to express that view,” Fundstrat digital asset strategist Sean Farrell said on Tuesday night.
Ethereum, which has jumped 7% over the past five days compared to bitcoin’s nearly 2% rise, is becoming “increasingly compelling,” Farrell said, given the “historical precedent for ETH leading broader crypto recoveries.”
During the 2022 bear market, ethereum began outperforming bitcoin several months before bitcoin eventually reached its market bottom, suggesting a similar pattern could be emerging.
(BTC-USD)
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65,050.46+356.96(+0.55%)
As of 4:14:38 PM UTC. Market Open.
BTC-USDETH-USD
What else you need to know:Investors are eyeing the potential passage of the Clarity Act, a major piece of crypto market legislation, as a major catalyst for digital tokens.
Farrell noted that while prediction markets imply a 30% to 40%probability of passage this year, participants in a recent Solana Policy Institute webinar showed “materially greater optimism.”
“I now think the true probability is likely closer to a coin flip,” Farrell said. “That distinction matters because it sets the market up for a non-consensus upside surprise.”
Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.
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