Analyst: ETH surged as rate hike fears eased following CPI data

Ethereum's (ETH) recent surge was driven by the easing of interest rate hike concerns after yesterday's U.S. Consumer Price Index (CPI) data came in below expectations, according to crypto analyst Darkfost. He explained that the market had previously priced in a roughly 46.5% probability of a rate hike at the FOMC meeting on July 29. However, with the release of the CPI data, the likelihood of a rate hike has virtually disappeared, prompting investors to rapidly move capital into the ETH futures market. In the hour immediately following the CPI announcement, approximately $1.2 billion in buying pressure was observed on Binance, with an additional $15 million on Deribit and $23.6 million on OKX. Darkfost cautioned that the rebound is largely speculative, driven by short-term funds reacting to macroeconomic indicators, and it is too early to consider it a sustained upward trend.