Ethereum Leads Crypto Rally as Rate-Cut Expectations Surge; Bitcoin Holds Steady, Chainlink Peaks at $27

Market Context

The easing tone from Fed policymakers catalyzed a classic “buy the rumor” rally. Crypto risk assets responded strongly, aligning investor sentiment with equities and gold, all buoyed by growing expectations of monetary easing. Social media chatter around rate cuts is now at its highest level in nearly a year, both reflecting and fueling this speculative rally.

Technical Details

• Ethereum (ETH): Led the rally, climbing to around $4,834. On-chain indicators such as declining exchange supply and favorable MVRV ratios suggest sustained holder conviction and breaking into new highs may be within reach.
• Bitcoin (BTC): Held firm near $117,000, with bullish sentiment reinforcing resistance near the $120K level.
• Chainlink (LINK): Stood out by decoupling from the broader market, surging to a year-to-date high of $27.11, driven by sentiment and strong buying pressure.

However, nascent optimism is counterbalanced by caution: Santiment analysis notes that such extremes in rate-cut chatter can signal peaks in sentiment—a potential precursor to retracement.

Analyst Perspectives

A Santiment analyst noted that Ethereum’s setup, bolstered by healthy on-chain trends, positions it for possible new highs, potentially targeting $5,000—as FOMO has yet to fully materialize. David Duong from Coinbase Research underscored how rate cut expectations could shift liquidity away from cash and into digital assets, especially if rising M2 supply and diminished money market fund appeal take hold.

Global Impact Note

A rate cut—as anticipated by markets—could broaden crypto’s appeal globally by enhancing liquidity and encouraging institutional and retail inflows. An Ethereum breakout, in particular, may reinforce its dominance across decentralized finance (DeFi) infrastructure. But the surge in mainstream attention might also raise concerns about overheating and regulatory scrutiny in multiple jurisdictions.