Late August saw massive volatility in the cryptocurrency arena. Bitcoin – the world’s largest digital currency by market capitalization – has fallen by Several thousand dollars It finally fell below $22,000 for the first time in about three weeks, while Ethereum – the world’s second largest cryptocurrency and major competitor to Bitcoin – eventually surged 100 percent from its June low of less than $1,000 per unit and managed Bitcoin’s growth rate.
Ethereum is really moving
There have been many arguments about a possible role reversal between Ethereum and bitcoin, and many analysts have often claimed that there may come a time when ETH will overtake BTC to become the primary digital currency. This recent switch in price between the two origins indicates that such a thing can happen, even more so than in the previous currency about to undergo what Many call it “merging”.
The merger will make Ethereum more environmentally friendly. The coin will use less energy in mining operations. It will also become much faster, and the gas fee will be significantly reduced.
While discussing the bitcoin price drop in late August, Susanna Streeter — senior investment and markets analyst at Hargreaves Lansdown — explained in a recent interview:
It does not show a rapid crash pattern, as the assets did not immediately rebound sharply, but sank less in the hours that followed. This appears to have been the result of a major sell-off in the absence of other external factors. This fresh cold descended on fears that the market is heading into a crypto winter. Although the price of Bitcoin at $21,800 is still far from its June lows of under $19,000, volatility is once again pummeling the market.
Simon Peters, crypto market analyst at e-Toro, also gave his two-year commentary:
US stock markets have fallen since the minutes of the July Fed meeting were released on Wednesday, and the main takeaway is that the Fed likely won’t finish raising interest rates until inflation is tamed across the board, with no guidance provided on future rate increases either. . With the tight correlation between US stocks and cryptocurrencies in recent months, I suspect this has moved into the crypto markets and that is why we are seeing a sell-off. The trend may also have been exacerbated by the liquidation of long positions in the perpetual bitcoin futures markets.
What will happen with the merge?
While discussing Ethereum Merge, Antonni Trenchev – co-founder of crypto platform Nexo – said:
The upcoming Ethereum Merge is the biggest cryptocurrency narrative at the moment and explains why ether left Bitcoin in its wake last month. A blockchain that portrays itself as energy efficient will always capture the imagination of the masses, which is why ether carries the wind in its sails before merging, a move for proof of stake.
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