Ethereum Outperforms Bitcoin in Risk-On Market Bounce
Ethereum (ETH) has outperformed other major cryptocurrencies, including Bitcoin (BTC), during a recent risk-on market bounce. ETH rose as much as 7% above $2,600 and remained up around 4% at the time of writing, while BTC was nearly flat with only a +0.33% gain. The rally follows mixed U.S. Consumer Price Index (CPI) data that markets largely dismissed due to expectations already being priced in. This led to increased risk appetite and buying pressure across crypto assets. The ETH bounce triggered significant short liquidations, including an outsized position on Hyperliquid worth hundreds of millions. Traders are now pricing a higher probability—mid-to-high 80%—of the Federal Reserve raising interest rates at its upcoming FOMC meeting. If Chair Jerome Warsh signals further aggressive tightening post-meeting, ETH's rally could stall; however, if he appears less hawkish, Ethereum may continue to gain strength.
