Ether Surges Toward $4,700 as Trump’s Crypto Retirement Push and Fed Rate Cut Bets Ignite Market Rally
Crypto markets extended their rally on Wednesday, driven by renewed institutional interest in Ethereum, growing speculation over a Federal Reserve rate cut, and a surprise policy signal from former U.S. President Donald Trump that could reshape long-term crypto demand.
Ether (ETH) led the advance with a nearly 30% weekly gain, bolstered by a surge in ETF inflows and rising short-term volatility expectations, while Bitcoin (BTC) held firm near $121,000.
“Ethereum’s short-dated implied volatility has jumped meaningfully, while BTC’s remains near historical lows. That’s a strong indication traders expect more immediate price action in ETH,” one trader commented.
Political Momentum and Macro Policy Support
Altcoins accelerated late Tuesday after Treasury Secretary Scott Bessent suggested the Federal Reserve should consider a 50 basis point rate cut in September. Risk appetite strengthened further after Trump directed U.S. regulators to evaluate the inclusion of crypto assets in 401(k) retirement plans, alongside private equity — a potential structural shift in long-term demand.
Although still in early stages, the retirement-plan move could unlock a new investor class if implemented.
ETH ETF Inflows Break Records
Ethereum-focused investment vehicles registered $520 million in net inflows on Tuesday alone, according to fund tracking data, with weekly flows on track to top $2 billion — the highest on record.
“Ethereum’s breakout above $4,600 reflects deepening institutional conviction,” said Nick Ruck, director at LVRG Research. “With ETF tailwinds and scaling upgrades ahead, ETH is primed to outperform in a dovish macro setup.”
Market Movers
- Ethereum (ETH): Nears $4,700, up 30% this week
- Bitcoin (BTC): Steady at $121,342, resistance at $122K
- Solana (SOL): +12% to $198
- BNB (BNB): +5% to $837
- XRP (XRP): +4% to $3.25
- Dogecoin (DOGE) & Cardano (ADA): +8%, riding ETH-led sentiment
“Unusually, we’re seeing altcoins lead and Bitcoin follow,” said FxPro senior analyst Alex Kuptsikevich. “BTC is testing all-time highs near $122K, with a potential breakout targeting $135K–$138K. ETH is closing in on its record above $4,800.”
Volatility Metrics Show Divergence Between BTC and ETH
Traders are positioning for further upside in ETH, with short-term implied volatility for Ethereum options spiking sharply — while BTC volatility remains suppressed.
“Mainstream equity desks are now participating in the Ethereum move,” said Augustine Fan of SignalPlus. “The options market is showing clear expectations of more short-term action in ETH compared to BTC.”
Outlook
Traders are watching for a potential break above ETH’s all-time high, ETF-driven accumulation, and further momentum should Fed rate cut bets solidify in the coming weeks. With Ethereum now the focal point of institutional flows, market dynamics appear to favor continued outperformance relative to Bitcoin.
