The latest U.S. inflation data has sparked a rally in the cryptocurrency market, with Ethereum seeing significant gains. The Consumer Price Index's 0.4% increase for December has led to speculation about potential interest rate cuts by the Federal Reserve, boosting investor sentiment across risk assets, including cryptocurrencies. Ethereum has also experienced a shift in investor behavior, with a notable inflow into Ethereum ETFs, reversing a recent trend of outflows. This renewed confidence is likely driven by expectations of regulatory clarity and favorable crypto policies under the new U.S. administration. Technical indicators for Ethereum suggest continued upward momentum, further supporting the positive market outlook.
The Volatility Shares Trust 2x Ether ETF (ETHU) surged 7.00% to $7.49 as of 10:00 AM on Wednesday, January 15.