The two major cryptocurrency leaders diverged on Wednesday (1st). Bitcoin’s rebound was blocked and struggling above US$57,000. However, Ethereum rose strongly, regaining the US$4,700 barrier, and marching towards a previous record high.
US Federal Reserve Board Chairman Jerome Powell issued hawkish remarks on Tuesday, warning of rising inflation risks and abandoning temporary claims, indicating that the Federal Reserve’s interest rate hikes may accelerate. This hit the risky market and the price of Bitcoin also weakened.
Edward Moya, a senior analyst at the foreign exchange broker Oanda, said that the Federal Reserve will speed up the pace of tightening and increase expectations for interest rate hikes, which has become a negative for Bitcoin. For now, Bitcoin transactions are more like risky assets than safe-haven assets.
But on the other hand, Ether has not been affected and has become the favorite cryptocurrency bet of most traders in the market. At the end of Tuesday, its price had risen for 4 consecutive days and reached above US$4,600. By the Asian Wednesday session, it broke through US$4,700 in one fell swoop.
According to Coindesk’s quotation, as of 16:09 on Wednesday afternoon Taipei time, Bitcoin was quoted at US$57,073, up 1.17% in 24 hours, and Ether was quoted at US$4747.71, up 7.75% in 24 hours. Solana changed its recent weak market and rose 8.2% to return to US$217.06.
With the strong rise of Ether and the stagnation of Bitcoin, ETH/BTC quotes broke through 0.08BTC, triggering more bullish bets.
Moya pointed out that Ether is still the favorite cryptocurrency bet of most traders, and once risk appetite is restored, it seems to be moving towards $5,000 again.

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