Ethereum breaks through 4600 USD to reach a new multi-year high, with continued interest from enterprises and institutions.

Source: cryptoslate

Compiled by: Blockchain Knight

On August 12, Ethereum (ETH) rose over 5%, surpassing $4600, reaching its highest price since December 2021.

The recent increase coincides with corporate treasury purchases, a record high in inflows for US spot ETFs, and growing market expectations for a possible interest rate cut at the Federal Reserve's September policy meeting.

The latest price changes occurred after the release of the U.S. Consumer Price Index (CPI) data, with the annual inflation rate exceeding the central bank's 2% target, but overall in line with expectations.

This data prompts market participants to increase their bets on the Federal Reserve implementing its first interest rate cut since 2020, which will ease the borrowing environment across the financial markets.

Bitmine Immersion Technologies has disclosed plans to raise up to $20 billion for further acquisitions of Ethereum. The company currently holds approximately $5 billion in ETH, making it one of the largest corporate holders of the second largest cryptocurrency.

The large-scale accumulation aligns with the major trend of enterprises incorporating digital assets into their treasury strategies, and this trend is accelerating as channels for institutions to enter the crypto market continue to expand.

On August 11, the net fund inflow for the Ethereum spot ETF listed in the United States reached 1 billion USD, setting a single-day record since its launch this year. This also marks the second time in August that its net inflow has surpassed that of the Bitcoin spot ETF.

In the past month, the Ethereum to Bitcoin exchange rate has strengthened, with the ETH/BTC ratio rising nearly 50% to above 0.37, although it is still 15% lower than a year ago.

After experiencing a period of stagnation relative to Bitcoin, Ethereum's market share in the cryptocurrency market has been steadily rising in recent weeks.

The network occupies a large share of activity in asset tokenization, DeFi, and blockchain settlement systems that simulate traditional market infrastructure. Recent software upgrades aimed at improving scalability and reducing transaction costs have supported these applications.

Regulatory dynamics also shape the current environment. In the United States, the passage of the "GENIUS Act" has provided clearer guidance for certain digital asset activities, which is considered one of the factors for institutional re-engagement.

At the same time, other digital asset reserves, including Sharplink, have also increased their ETH holdings, further boosting market demand. The combination of corporate accumulation, strong inflows into ETFs, and potentially loose monetary policy has jointly driven Ethereum to reach its highest price in nearly five years.

Despite the high volatility that often follows previous price increases, the current market environment reflects a combination of multiple driving factors, with capital continuously concentrating on buying this asset in recent weeks.