Ether Hits Six-Week High As Strong Earnings Fuel Stock Market Rally
Layer 1 Tokens Lead the Charge
Stock markets rallied Tuesday on the back of better-than-expected earnings from General Motors, Coca-Cola and UPS. Treasury yields fell and the U.S. dollar weakened as investors cheered the latest sign of the economy’s resilience in the face of the Fed’s aggressive inflation-fighting measures.
Ether surged nearly 12% to its highest level in six weeks and Bitcoin is trading above $20,000 for the first time since Oct. 6. Ether has jumped 16.2% in the last seven days, three times better than Bitcoin.
ETH Price + BTC Price, Source: The Defiant Terminal
Layer 1 blockchains are outperforming Tuesday with Solana surging 10% while Polkadot and Cardano are up 10% and 12% respectively, in early morning trading UK. time on Wednesday.
ADA Price + DOT Price + SOL Price, Source: The Defiant Terminal
The S&P 500 and tech-heavy Nasdaq are on track to post a third straight day of gains as investors look forward to earnings reports from social media giant Meta tomorrow and tech bellwethers Amazon and Apple on Thursday.
Rate Hike Next Week
Despite the risk-on action we’ve seen this week, all eyes remain on the U.S central bank’s next meeting on Nov. 2. Federal funds futures indicate a near-certainty of another 0.75% interest rate hike, according to CME FedWatch.
Risky assets like crypto have fared badly this year as the highest domestic inflation in four decades has spurred the Fed to raise rates five times in a bid to cool the economy.
On Oct. 23, crypto trader loomdart flagged a sharp rise in ETH open interest on the BitGet exchange.
BitGet ETH Open Interest. Source: Coinglass
Earlier today, he speculated that Ether’s outperformance could be related to traders getting liquidated on the exchange.