The merger did not drive cryptocurrency prices as expected. Instead, the third week of September started with more red than green. The entire market has collapsed, and even the overall market value has gone down.
Currently, many crypto assets are losing every hour. Many cryptocurrency exchanges aggressively liquidate leveraged positions. according to coinglass, The total amount liquidated has already reached $431.51 million, with 130,087 merchants affected.
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Bitcoin price dropped
Currently, the price of Bitcoin is at $19,326, which indicates a loss of 2.38% in 24 hours. Although its 1 hour price gains show an advance of 1.07%, BTC lost 13.58% in one week.
Bitcoin traded above $20K from September 10-14 before the Ethereum merger. After a few minutes of upgrading, it lost its grip on the price tag and dropped to $1,701. It held this level until September 17, when the market closed again above $20K
But this 3rd week of September pushed BTC to $19K as the overall market opened in the red.
Ethereum crashes after merger
Today, September 19, the price of Ethereum Situations at $1,359.13 after losing 4.26% in 24 hours. But this is not the whole story. The price of ETH collapsed after the merger on September 15th. Prior to the upgrade, Ether traded above $1,700K from September 10th to September 13th before dropping to $1,574 one day before the merger.
At the market close on September 15, the day of the consolidation, Ether dropped to $1,432 and stayed at that price until September 18.
Ethereum price data shows that it lost 21.52% in the entire week. Fortunately, its 1-hour gains are green, indicating a ray of hope.
The whole market is red, why?
Market critics have hung That macroeconomic factors caused the downtrend. The first factor is the latest CPI data released in September. The figure indicates that inflation is still raging and will require another rate hike by the Federal Reserve. Many market watchers are already stating that the Feds will go after 100 points, which hasn’t been reached in forty years.
The fear of persistent inflation and the Fed’s aggressive efforts to fight it caused panic in the market. The ongoing liquidations across the exchanges will not help at all. Instead, it may create more problems in the market.
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While some are talking about the August CPI and the impending interest rate hike, many are suggesting that the Ethereum merger did more harm than good. Some analysts have stated that the upgrade has been exaggerated, and recent events have proven that it was “rumor buying, news selling”.
Nobody knows how the market will move in the next few days. But many people are expecting more downside moves after the September 21 Federal Reserve meeting.
Featured image from Pixaby and chart from TradingView.com