$ETH Poised for #ATH as Fed Cuts Loom, Analysts Say


$ETH has been highly correlated with small-cap equities, which are sensitive to interest rates. Analysts say both assets could move higher with as many as four consecutive Federal Reserve cuts potentially on the horizon.


Macro investor outlet Milk Road noted Tuesday that there is an “almost spooky” correlation between $ETH and the Russell 2000 Index, which comprises small-cap equities. The Russell 2000 tracks 2,000 U.S. public companies with small market capitalizations and is widely used to gauge economic performance.


Both assets are highly sensitive to interest rates. CME futures markets currently predict a 95.7% chance of another 0.25% rate cut by the Federal Reserve at its Oct. 29 meeting and an 82.2% probability of a further cut in December.


Justin d'Anethan, head of partnerships at crypto private markets firm Arctic Digital, explained that, unlike $BTC, $ETH generates yield. That matters significantly in a world where #rate cuts are not just priced in but practically guaranteed, he told the media.

image
October 09, 2025 at 1:57 AM
1
1
1