Compiled by: Vernacular Blockchain

The Fed changed everything

Jerome Powell essentially acknowledged that the U.S. economy is cooling. For the first time in years, he hinted at a September interest rate cut. Markets were abuzz.

Why? Cheap money flows into riskier assets: Bitcoin, the stock market, and especially Ethereum. On the day of Powell's speech, Ethereum saw its biggest single-day gain in over a year.

Three forces driving this madness

• Wall Street goes all out

  Remember when a Bitcoin spot ETF was approved? Billions of dollars poured into pension and retirement accounts. Now the same thing is happening with Ethereum. Regular people can buy Ethereum through their 401(k)s without ever having to touch a crypto wallet.

• Stablecoins are Ethereum’s secret weapon

  Over half of the world's digital dollars (hundreds of billions of dollars worth) run on Ethereum. Imagine Visa's payment network built on your platform. Even the European Central Bank is considering using Ethereum to build a digital euro.

• Supply is tightening

  Due to staking, people are choosing to lock up their Ethereum rather than sell it. Ethereum balances on exchanges have reached a 10-year low. Decreased supply + increased demand = rising prices.

Where are we headed?

Some analysts predict that Ethereum could reach $15,000. Tom Lee of Fundstrat believes that Ethereum's market capitalization could surpass Bitcoin.

Think of Apple before the iPhone. It was just a computer company until the App Store created an entire economy. Ethereum may be having its "iPhone moment," with banks and governments building on it.

Risks no one mentions

Don’t rush to invest all your money. There are three major risks to be aware of:

• Leverage bomb: Many people buy Ethereum with borrowed money. If the price drops, forced selling could trigger a crash.
• The Fed may change its mind: If inflation picks up or rate cuts are delayed, cryptocurrencies will bear the brunt.
• Competition is real: Platforms like Solana are faster and cheaper. Ethereum isn’t a sure win.

What this all means

Markets are cyclical. There will be pullbacks, corrections, and surprises. But Ethereum is transitioning from experimental technology to de facto financial infrastructure.

Rather than betting on short-term price fluctuations, consider long-term investment. The real story is not today's surge, but the future of the currency itself that may run on Ethereum.

Regular investing (dollar-cost averaging) is always a safer approach than trying to buy the dips and sell the top.

Link to this article: https://www.hellobtc.com/kp/du/08/6010.html

Source: https://medium.com/@alertforalpha/the-fed-just-broke-ethereum-fd46381d0643