Ether Hits Six-Week High As Strong Earnings Fuel Stock Market Rally

Layer 1 Tokens Lead The Charge

Stock markets rallied Tuesday on the back of better-than-expected earnings from General Motors, Coca-Cola and UPS. Treasury yields fell and the U.S. dollar weakened as investors cheered the latest sign of the economy’s resilience in the face of the Fed’s aggressive inflation-fighting measures.

Ether surged nearly 12% to its highest level in six weeks and Bitcoin is trading above $20,000 for the first time since Oct. 6.

ETH Price + BTC Price, Source: The Defiant Terminal

Layer 1 blockchains are outperforming today with Solana surging 12% while Polkadot and Cardano are up 10% and 14% respectively.

ADA Price + DOT Price + SOL Price, Source: The Defiant Terminal

The S&P 500 and tech-heavy Nasdaq are on track to post a third straight day of gains as investors look forward to earnings reports from social media giant Meta tomorrow and tech bellwethers Amazon and Apple on Thursday.

Rate Hike Next Week

Despite the risk-on action we’ve seen this week, all eyes remain on the U.S central bank’s next meeting on Nov. 2. Federal funds futures indicate a near-certainty of another 0.75% interest rate hike, according to CME FedWatch.

Risky assets like crypto have fared badly this year as the highest domestic inflation in four decades has spurred the Fed to raise rates five times in a bid to cool the economy.

Derivatives Action

On Oct. 23, crypto trader loomdart flagged a sharp rise in ETH open interest on the BitGet exchange.

Earlier today, he speculated that Ether’s outperformance could be related to traders getting liquidated on the exchange.