Ethereum Could Witness Supply Shock and Price Surge as Fed Pivots: CoinShares Research Head

A top executive at digital asset manager CoinShares believes market conditions could soon send Ethereum (ETH) booming.

In a new interview with Scott Melker, James Butterfill, Head of Research at CoinShares said a likely next Fed pivot could be bullish for Bitcoin (BTC) and ETH.

Butterfill says Ethereum could see additional bullish momentum as the Fed begins to cut rates from potential. launch ETH exchange-traded funds (ETFs) in the spot market and a supply crunch due to investors already betting on a large quantity of the top altcoins.

“If you look at the futures market, interest rate expectations point to an initial rate cut. [is] it won’t be until December. I think the first rate cut will be bigger than expected and later than expected, i.e. a knee-jerk reaction…

This would actually be very optimistic for something like Bitcoin, which is extremely sensitive to interest rate expectations…

Certainly on the Ethereum side, it’s interesting. The amount of Ethereum in circulation is quite small because many people are staking. Now, the new ETFs probably won’t be able to bid when they launch in July, so there may well be a bit of a squeeze, a tightening of supply, and that could lead to some pretty strong rises. in prices. »

Ethereum is trading at $3,761 at the time of writing, down more than 2% in the last 24 hours.

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