The price of Ethereum (ETH) rose by 14.12% in the last 24 hours to reach $4,817.76. With this increase, Ethereum's market capitalization increased by $65 billion to $581.75 billion.
This is poised to go down as the second-largest daily price increase in Ethereum's history.
ETH is trading just 2.05% below its all-time high of $4,891.70 hit in November 2021.
The increase was driven by Fed Chair Jerome Powell's speech at the Jackson Hole economic symposium. In his final Jackson Hole speech, Powell strongly hinted at a potential interest rate cut in September, but he made no firm commitment. His remarks were aimed at balancing the risks of a weakening labor market with inflationary pressures.
Expectations for a rate cut rose sharply following Powell's remarks. Before Powell's speech, investors had seen a 70% chance of a quarter-point rate cut in September, but after his speech, that probability rose to 89%.
Expectations of interest rate cuts have led investors to shift to riskier assets. This development has created a strong bullish wave not only for Ethereum but also for the cryptocurrency market in general.
*This is not investment advice.
