Overnight, the "most exciting" asset is Ethereum, which has reached a historic high again after four years

Federal Reserve Chairman Jerome Powell's dovish remarks propelled Ethereum's price to a historic high on Friday, surpassing the previous peak from November 2021.

On Friday, according to Wall Street News, Federal Reserve Chairman Powell delivered a significant speech at the Jackson Hole central bank annual meeting, stating that the current situation indicates an increased downside risk to employment. This shift in risk balance may imply the need for interest rate cuts.

This statement has heightened market expectations for a rate cut in September, as a generally loose liquidity environment tends to boost investor demand for risk assets. Katalin Tischhauser, head of research at Sygnum Bank, stated:

The response from the crypto market has been swift and positive. In the current liquidity-driven bull market cycle, investors quickly seized the dovish signals, and Powell's remarks provided just such a signal.

The second-largest cryptocurrency, Ethereum, briefly touched around $4,880 during trading, refreshing its high of $4,866.40 from November 2021, with a daily increase of over 15%. Since the low in April of this year, Ethereum's price has rebounded more than 250%.

In addition to favorable macro conditions, the continuous influx of institutional funds has also provided solid support for Ethereum. Since its approval in July 2024, the assets managed by the U.S. spot Ethereum ETF have exceeded $20 billion. After experiencing four consecutive days of outflows, these ETF products welcomed a net inflow of $287.6 million on August 21.

(Ethereum ETF fund inflow trend)

Ethereum's strong rise has coincided with a decline in Bitcoin's dominance in the crypto market, which some market observers view as a signal of the potential arrival of "altseason."

Statistics show that as of Wednesday, Bitcoin's share of the total cryptocurrency market capitalization fell below 60% for the first time in four months, while at this year's peak, that ratio had reached 66%. This shift indicates that some funds are rotating from Bitcoin to other altcoins, particularly large-cap tokens like Ethereum, in search of higher returns.

Strong Institutional Demand: ETF and Corporate Treasury Dual Drivers

Institutional acceptance of Ethereum is one of the core drivers of this round of price increases.

Data shows that in August, the U.S. spot Ethereum ETF attracted over $2.5 billion in net inflows, while Bitcoin funds experienced an outflow of $1.3 million. Nate Geraci, president of NovaDius Wealth Management, pointed out on social media platform X:

I feel that the spot Ethereum ETF is severely undervalued, simply because traditional financial investors do not understand it.

He believes that Bitcoin is easier to understand due to its clear narrative as "digital gold," while Ethereum requires investors to spend more time digesting its complexities. He stated:

Now people resonate with the saying that Ethereum is the 'pillar of future financial markets.'

At the same time, more and more companies are using Ethereum as a digital asset treasury. Previously mentioned by Wall Street Journal, listed companies are reshaping their relationship with Ethereum in an unprecedented way.

Data shows that as of Friday, the total value of Ethereum held by enterprises has increased to over $29.75 billion. In the past month, companies including BitMine, SharpLink, and Bit Digital have been the main force in increasing their holdings. Among them, BitMine is the largest corporate holder, owning 1.15 million Ethereum, valued at approximately $5.5 billion at current prices