Must you purchase Ethereum because it diverges from Bitcoin?

• Ethereum’s worth lags behind rival cryptocurrencies
• If Ethereum follows Bitcoin, a brand new yearly excessive may be within the playing cards
• Subsequent week’s Federal Reserve assembly is vital for the US greenback

The cryptocurrency market bounced strongly in 2023. Following a disappointing 2022, bulls are again as Bitcoin and different main cryptocurrencies rallied laborious.

For instance, Bitcoin gained 81.86% YTD whereas Ripple rose as a lot as 137.53%. In contrast with the 2, one may say that Ethereum worth lags, up “solely” +58.37% this 12 months.

In different markets, such returns are deemed actually inconceivable. Not within the cryptocurrency market, although, the place fortunes are made (and misplaced) virtually in a single day.

So can one purchase Ethereum due to the dearth of momentum in comparison with its friends? Furthermore, following Bitcoin’s steps, will Ethereum make a brand new excessive for the 12 months?

Ethereum chart by TradingView

Federal Reserve to hike the funds charge once more subsequent week

Subsequent week will likely be decisive for the brief and medium-term perspective on the US greenback. The Federal Reserve of the USA is because of set the financial coverage subsequent Wednesday, and the chance of a hike is near 100%.

By no means in historical past did the Fed ignore what the market has already priced in, so a charge hike is definite.

However the Fed could simply flip the tables round throughout the press convention that follows the FOMC Assertion.

If the Fed Chair, Jerome Powell, hints on the terminal charge being hit, then the market will attempt to anticipate when the primary charge reduce will likely be delivered.

Therefore, whereas a charge hike subsequent week is hawkish the greenback, the Fed could ship a dovish message throughout the press convention. If that’s the case, anticipate Ethereum to make a brand new excessive for the 12 months.