In just the past eight days, new cryptocurrency investors, often referred to as “whales,” have acquired a staggering $1.34 billion worth of ether. This surge seems to be linked to an influx of Spot Ether ETFs and speculation surrounding price movements, particularly in light of upcoming US inflation data.
Specifically, these whales have gathered 312,052 Ether (ETH) across ten new cryptocurrency wallets, as reported by the Crypto Intelligence Platform LookonChain.
This activity has led to a significant $300 million increase, surpassing a record-setting inflow into the Ether Exchange Sales Fund (ETF), which saw $1 billion in ether purchases just this past Monday.
Market analysts suggest that this $1 billion accumulation could push Ether closer to its previous all-time high of $4,890, which is more than 12% above current prices. Additionally, rising demand could influence expectations regarding the US Federal Reserve’s interest rate decision on September 17, particularly as investors await this week’s Consumer Price Index (CPI) and Producer Price Index (PPI) reports.
89% of investors anticipate interest rate cuts in September
The CPI and PPI reports are viewed as crucial in shaping monetary policy expectations. If the inflation data comes in higher than anticipated, it could dampen investor enthusiasm and potentially halt the ongoing crypto rally. This buildup aligns with typical ETH behavior and might either be paused or sustained without a new catalyst.
One analyst noted that despite the size of the recent movements, a near-neutral Z-score (–0.06) indicates that ETH remains within its standard volatility range.
The market is currently pricing in an 82% likelihood that the Federal Reserve will not change rates during the upcoming Federal Open Market Committee meeting on September 17, as per the latest projections from the CME Group’s FedWatch tool.
Interestingly, short-term ether holders are still posting positive returns, hinting that this group might be preparing for potential price corrections.
