Since the Federal Reserve announced its first interest rate cut in four years, financial markets have experienced a new wave of volatility, with the cryptocurrency market particularly eye-catching. Ethereum (Ether) performed significantly better than Bitcoin (Bitcoin) after this rate cut, with gains of more than 16%. In comparison, Bitcoin rose by about 6%. This difference clearly reflects the current Market sentiment towards different cryptocurrency sectors is divided.

Ethereum’s strong performance not only reflects investors’ recognition of its technical potential and application prospects, but may also be related to the market’s interest in emerging fields within the Ethereum ecosystem such as decentralized finance (DeFi) and NFT (non-fungible tokens). optimistic expectations. The rapid development of these fields has injected new vitality into Ethereum, attracted a large influx of funds, and pushed up its price.

At the same time, the Ethereum perpetual futures financing interest rate turned positive, which is a direct reflection of the market’s bullish sentiment. This change means that investors are willing to pay extra to hold Ethereum in order to obtain the higher returns it may bring in the future, which further strengthens the market's confidence in Ethereum.

Like any market, the cryptocurrency market is filled with uncertainty and risk. The current optimism may trigger market adjustments due to excessive optimism, especially when external factors such as global economic conditions, regulatory policies, etc. change, market volatility may intensify.

The outstanding performance of Ethereum after the Federal Reserve cut interest rates is the result of the joint action of many factors such as market sentiment, technical potential and application prospects. The market is ever-changing. We must adapt to changes and follow the trend, and we will surely be able to gain a firm foothold in the currency circle!