tl;dr
Ethereum surged over 5% on August 12, reaching above $4,500, its highest since December 2021. The rally was driven by corporate treasury purchases, record inflows into U.S. spot Ethereum ETFs, and expectations of a Federal Reserve interest rate cut in September. U.S. inflation data aligned with fore...
Ethereum (ETH) surged over 5% on August 12, reaching a multi-year peak above $4,500, its highest price since December 2021. This rally was driven by corporate treasury purchases, record inflows into U.S. spot exchange-traded funds (ETFs), and increasing market expectations that the Federal Reserve will cut interest rates at its September meeting.
The price jump came after the release of U.S. Consumer Price Index data, which showed annual inflation above the Fed's 2% target but largely as forecasted. This data led investors to ramp up bets on a rate cut, which would ease borrowing conditions and likely benefit financial markets.
One standout corporate player, Bitmine Immersion Technologies, announced plans to raise up to $20 billion to acquire more Ethereum, adding to its existing $5 billion ETH holdings. This move reflects a growing trend of companies incorporating digital assets like Ethereum into their treasury strategies as institutional crypto market access widens.
In addition, U.S.-listed spot Ethereum ETFs saw $1 billion in net inflows on August 11—the largest daily inflow since their launch earlier this year—surpassing spot Bitcoin ETF inflows twice in August. Ethereum’s strength versus Bitcoin has also been notable, with the ETH/BTC ratio climbing nearly 50% over the past month, despite a 15% year-on-year decline.
Ethereum’s market share has improved recently after lagging behind Bitcoin for some time, buoyed by its dominant role in asset tokenization, decentralized finance (DeFi), and blockchain-based settlement systems akin to traditional market infrastructure. Software upgrades enhancing scalability and reducing transaction fees have supported this upswing.
Regulatory developments such as the GENIUS Act in the U.S. have provided clearer guidelines for digital asset activities, encouraging renewed institutional participation. Other digital asset holders like Sharplink have also boosted their Ethereum exposure, adding to demand pressure.
The combination of robust corporate accumulation, strong ETF inflows, and hopes for looser monetary policy has propelled Ethereum to its highest price in nearly five years. While past rallies have often led to volatile corrections, the current landscape features multiple converging factors that have concentrated buying interest in Ethereum over recent weeks.