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Cryptocurrencies are getting more expensive before The Merge starts. BTC over 22 dollars

Cryptocurrencies are getting more expensive before The Merge starts. BTC over 22 dollars

created Simon peters12 Września 2022

Cryptocurrency markets have seen spikes in the last week as we enter the last 72 hours ahead of The Merge of the Ethereum network. This event brings together all minds in the sector: traders and users are waiting to see how The Merge will impact the market (more below).

Last week Ethereum increased by about 10 percent. during the week, despite earlier drops on Wednesday. The token started the week around $ 1 before dropping below $ 560 mid-week. From that point it rose to just under $ 1.

Bitcoin in the meantime, it also saw an increase. After starting the week just below $ 20, it dropped to below $ 000, then rose again and now stands at around $ 18 - an increase of about 500%. within seven days. The discussion of this situation revolves around the so-called short squeeze bitcoin, i.e. sharp increases in stock prices, mainly caused by excessive closing of short positions, that rising investors want to take advantage of.

This week, a lot of economic data may have an impact on prices. US inflation rates are most likely to change direction.

Google is launching the Ethereum Merge counter

Due to the fact that Ethereum Merge is getting closer, Google has published a countdown clock to the event in its search engine. Searching for "Ethereum Merge" will bring up a timer displaying the countdown to The Merge finalization.

The attention of the entire cryptocurrency community is now focused on this long-awaited event and market activity is increasing significantly as users and investors prepare for the finalization of The Merge. The token and its blockchain, while not the largest in terms of market capitalization, has a huge impact on the sector as it is one of the most used platforms for cryptocurrency projects.

Increased activity reawakened the discussion about the possible "Flipping" in 2023. This is a notorious event in the cryptocurrency community where the price of Ethereum will overtake Bitcoin. While this perspective seems distant, much will be decided when we better understand the economic implications of The Merge.

More and more evidence of a bear market for cryptocurrencies

As the market goes through turbulent times, there are more and more examples of individual "bearish building" - where major players are investing in assets at favorable prices.

One of the most influential players microstrategy Michael Saylor, announced his intention to sell $ 500 million in shares to finance the acquisition of more cryptocurrencies. This is not a rare move in such market conditions - it aims to provide liquidity to buy assets that are perceived as undervalued - which Saylor explicitly includes in its bitcoin strategy.

State Street board member Irfan Ahmad, in turn, commented in the Australian daily Sydney Morning Herald that despite volatility, companies-customers continue to buy in the cryptocurrency space. Ahmad says that with this portfolio of projects and the growing sophistication of the sector, business customers are thinking pragmatically about how they can gain greater access to the sector.

Columbia Records registers trademarks for NFT

Columbia Records, a major record company, owned by Sony Music Entertainment, has registered trademarks for a number of cryptocurrency-related products. The company has registered trademarks for downloadable audio, video and live performance recordings and other media files authenticated by NFT.

The NFTs have had some tough months behind them as the market adjusted to the rapidly advancing bull market in 2021, but valuations have returned to the ground. However, what is crucial in the market is that the technology is still very valuable, even if some designs are not as durable.
The Columbia example is innovative because it gives music fans the ability to access digital designs and retain blockchain-verified ownership of these products. The potential of NFT technology goes far beyond digital works of art itself and can be used for many assets that are not "convertible" (that is, cannot be exchanged like currency) but have value and the requirement of a digital guarantee of ownership via blockchain. In the future, this could include many assets, such as stocks, commodities, and even physical property.

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About the Author
Simon peters
eToro analyst. A graduate of the Faculty of Mechanical Engineering at Brunel University in London. He is CFA UK Level 4 certified in Investment Management.