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According to the head of the research department of Coinshares, the possibility of an increase in the price of Ethereum has increased due to the decrease in interest rates and supply limitations.
A senior manager of digital asset management at CoinShares believes that market conditions could soon push Ethereum (ETH) higher.
The possibility of an increase in the price of Ethereum due to the decrease in interest rates and supply restrictions
In a new interview with Scott Melker, James Butterfill, head of research at CoinShares, says that the Fed’s possible future pivot could be bullish for both Bitcoin (BTC) and ETH.
Butterfill says Ethereum could see further upside as the Federal Reserve begins to cut rates from the potential launch of ETH exchange-traded funds (ETFs) in the cash market and supply cuts due to investors already owning a large amount of the top altcoin. They have put it, see.
“If you look at the futures market, interest rate expectations suggest that the first rate cut won’t be until December. I think the first rate cut will be larger than expected and later than expected, a knee-jerk reaction.
In fact, it would be very bullish for something like Bitcoin, which is highly sensitive to interest rate expectations.
It’s certainly interesting in the Ethereum sector. The circulating supply of Ethereum is very small. Because many people are investing. “Now the new ETFs probably won’t be able to launch in July, so there could be a bit of pressure going on, a reduction in supply, and that could lead to a very sharp rise in prices.”
At the time of writing, Ethereum is trading at $3,761, down more than 2% in the last 24 hours.
