[Bitcoin Now] Ethereum Surpasses $4,900 for the First Time... Market Cap Approaches 830 Trillion Won

Bitcoin Falls 1.97% from Previous Day
September U.S. Rate Cut Expectations
Stablecoin Adoption Boosts Market

Ethereum, the world's second-largest cryptocurrency, set a new all-time high on August 25 by surpassing $4,900 during intraday trading. Having outperformed Bitcoin in returns this year, Ethereum broke its previous historical peak from November 2021 as expectations for a U.S. interest rate cut in September resurfaced. Its market capitalization also briefly approached $600 billion (approximately 830 trillion won).

Ethereum Surpasses $490 Billion for the First Time

According to cryptocurrency market tracker CoinMarketCap, as of 9:30 a.m. Korean time, the price of Ethereum was $4,797, up 0.19% from 24 hours earlier. Around 4 a.m. that day, Ethereum broke through the $4,900 mark for the first time during intraday trading, reaching a record high of $4,954. On August 22, just before Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Symposium, Ethereum was in the $4,200 range, but it quickly soared to the $4,800 range, breaking the November 2021 record. Just two days later, it once again set a new all-time high. Its market capitalization also reached as high as $596 billion (about 827 trillion won), approaching $600 billion (about 830 trillion won).

At the same time, Bitcoin, the leading cryptocurrency, was trading at $113,143, down 1.97% from 24 hours earlier. Until the previous day, it had maintained the $116,000 range, but then the decline widened. Other major altcoins (cryptocurrencies other than Bitcoin), such as Ripple, Tether, Solana, and Tron, were also showing slight declines of around 0% in market capitalization.

Expectations for a U.S. interest rate cut are cited as the main driver behind Ethereum's surge. On August 22, at the annual economic policy symposium in Jackson Hole, Wyoming, Chair Powell emphasized the risk of slowing employment over inflation, signaling the possibility of a rate cut in September. However, he also indicated a "wait and see after one cut" stance, noting that concerns about inflation due to tariffs still remain.

Ethereum Up 45% This Year, Outperforming Bitcoin

Ethereum's strength over Bitcoin has been evident since the beginning of the year. As of August 22, Ethereum's year-to-date gain stood at 45%, far surpassing Bitcoin's 25%. Over the same period, the U.S. stock index S&P 500 rose only 10.2%, making its performance relatively modest.

Financial media outlet CNBC, citing crypto data provider Arkham, reported that Ethereum asset management company Bitmine Immersion Technologies, led by Tom Lee, purchased $45 million worth of Ethereum on August 23, immediately after Powell's speech. Tom Lee is regarded as one of Wall Street's most prominent Ethereum bulls. The Wall Street Journal (WSJ) also analyzed that the recent rally reflects a trend of companies issuing stocks and bonds to invest in Bitcoin and Ethereum.

WSJ further noted that some investors are focusing on Ethereum's intrinsic value. Bullish investors, including tech billionaire Peter Thiel, have argued that the Ethereum-based blockchain system could become a key platform for providing new financial products and services to the U.S. stock market. Thiel is reportedly an investor in the cryptocurrency exchange Bullish, which made its stock market debut on August 13, opening at $90-2.43 times its IPO price of $37.

There is also analysis that the global trend of stablecoin adoption is acting as a positive factor for Ethereum. James Butterfill, head of research at CoinShares, said in an interview with Axios, "Investor sentiment is improving dramatically." He added, "It is highly likely that the Ethereum blockchain will continue to be the main medium for large-scale stablecoin transactions," and predicted that this trend would accelerate following the passage of cryptocurrency legislation such as the GENIUS Act in the United States. He also pointed out that "due to the design characteristics of Ethereum, supply is limited while demand is increasing," citing this as a factor supporting the price floor.