New Crypto Whale Buys $1.3B of Ether Ahead of Key US Inflation Reports

A new cryptocurrency whale has accumulated $1.34 billion worth of Ether (ETH) in the past eight days, acquiring a total of 312,052 ETH through 10 newly created wallets, as reported by the crypto intelligence platform Lookonchain [1]. This massive acquisition surpassed the record inflows into US spot Ether ETFs, which saw a net inflow of $1 billion on Monday. The whale’s activity has intensified speculation about Ether’s price trajectory in the lead-up to this week’s key U.S. inflation data reports, which could influence the Federal Reserve’s monetary policy decisions.

The purchase has sparked optimism among analysts, who suggest that the increased demand may push Ether closer to its previous all-time high of $4,890. Currently, the price is more than 12% below that level. Javier Rodriguez-Alarcón, Chief Investment Officer at XBTO, emphasized that the CPI and PPI reports are critical in shaping expectations for the Fed’s Sept. 17 meeting. He noted that higher-than-expected inflation figures could dampen investor sentiment and potentially stall the current crypto rally [1].

Rodriguez-Alarcón further stated that despite the large-scale accumulation, Ether’s volatility remains within normal levels, as indicated by its near-neutral Z-score of –0.06. He also suggested that ongoing corporate treasury buying could provide the momentum needed for Ether to test its previous peak. Meanwhile, 89% of investors expect a September interest rate cut, though the CME Group’s FedWatch tool currently prices in an 82% chance that the Fed will maintain its current interest rate [1].

The surge in Ether demand contrasts with increased profit-taking by short-term holders, suggesting that some investors may anticipate a near-term correction. As the market awaits critical macroeconomic data, the interplay between macroeconomic indicators and crypto market movements continues to draw close attention from both retail and institutional participants.

Source: [1] New crypto whale buys $1.3B of Ether ahead of US inflation reports (https://coinmarketcap.com/community/articles/689b467de5de8d42b785edc1/)