Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD) – Ethereum Overtakes Bitcoin, Dogecoin as Key Milestones Approach: Analyst Warns Things Could Go Down After Merger

Major coins were in the green Wednesday night as the global cryptocurrency market capitalization rose 1.5% to $1 trillion at 8:20 PM EDT.


Price performance of large coins
Coin 24 hours a day 7 days Price
Bitcoin BTC/USD 0.3% 4.7% $20,264.02
Ethereum ETH/USD 4.4% 0.7% $1,644.77
Dogecoin DOGE/USD 2.6% 0.1% $0.06

Top 24-hour winners (data via CoinMarketCap)
Cryptocurrency 24-hour % change (+/-) Price
Celsius (GONE) +27.8% $1.87
Ravencoin (RVN) +12.01% $0.07
Ethereum Classic (ETC) +10.5% $39.20

See also: Best Crypto Debit Card

Why it matters: Ethereum intraday gains surpassed that of Bitcoin hours before “The Merge” – which transfers the second largest cryptocurrency from a proof-of-work framework to a proof-of-state mechanism.

Cryptocurrencies continued to track US stock futures, which were up at the time of writing. On Wednesday, after a volatile session, the S&P 500 and Nasdaq ended 0.3% and 0.7% higher, respectively.

On Thursday, August producer price index (PPI) data was released, which fell 0.1% month-on-month compared to a 0.4% fall in July.

Investors await a slew of economic data on Thursday morning, such as retail sales, jobless claims, import prices and the Philadelphia Fed’s manufacturing survey.

“Bitcoin’s best-case scenario was the Fed’s soft landing, and now that seems less likely as the risk of a recession rises. A broader downturn is hitting Wall Street, and that should keep Bitcoin grounded and stuck in this crypto winter,” said Edward Moyasenior market analyst at OANDAin a note seen by Benzinga.

On the imminent Ethereum merger, Moya said, “Ethereum’s merger should be a pivotal moment for the cryptoverse, and its current weakness more likely reflects investor expectations that we will see a classic ‘sell the event’ reaction once the merger is complete.”

“Ethereum will likely continue to chip away at Bitcoin’s lead as the top crypto, but the chances of a ‘turnaround’ will have to wait another couple of years.”

A Twitter survey conducted by Justin Bennett appears to agree with Moya’s assessment that the merger is a “sell the event” phenomenon in terms of pricing action.

A majority, 49.2%, of 2,330 respondents to the trader’s poll said ETH will dump after the upgrade, while 29.2% said it would pump. 21.6% said it was a “non-event”.

Michael van de Poppe explained on Twitter that the funding rate is “ultra negative” on Ethereum because people have spot ETH for an expected airdrop. “People are hedging with shorts on $ETH to cover their positions. Risk free trading.”

The cryptocurrency trader said in a separate tweet that the funding rate on ETH is negative 0.2% as “everyone is shorting the merger.”

Negative financing rates below 0 mean that short sentiment is dominant, while rates above 0 indicate longs are dominant.

Willy Woo tweeted Wednesday, “Historically, bottoms coincide with short-term owners having a lower cost basis than long-term owners.”

– We are close, but not there yet. Some more time to burn, said the popular Bitcoin analyst.

Read next: Bitcoin mining difficulty hits record highs even as price falls

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