Ethereum Outperforms Bitcoin After Fed Rate Cut Ethereum (ETH) has significantly outperformed Bitcoin (BTC) since the Federal Reserve cut interest rates by 50 basis points last week. According to The Block, ETH has gained over 16% since the rate cut, while BTC has gained about 6%. Increased Investor Confidence in ETH The positive performance of ETH can be attributed to increased investor confidence in the Ethereum ecosystem. The improved perpetual futures funding rates for ETH indicate that investors are placing more bets on ETH's price appreciation. This is likely due to the Ethereum network's strong fundamentals, such as the upcoming Shanghai upgrade and the growing adoption of decentralized finance (DeFi) applications. Fed Rate Cut Fuels Risk Appetite The Federal Reserve's rate cut has also contributed to the improved performance of cryptocurrencies. By reducing interest rates, the central bank has made it more attractive for investors to take risks, leading to increased investment in riskier assets like cryptocurrencies. Conclusion Ethereum's outperformance of Bitcoin following the Fed rate cut highlights the growing confidence in the Ethereum ecosystem. Investors are betting on ETH's potential for growth as the network continues to evolve and DeFi adoption increases. As the crypto market stabilizes, ETH is well-positioned to maintain its momentum, supported by strong fundamentals and investor optimism.