Bitcoin, Ethereum, and other major cryptocurrencies are still struggling despite a flurry of bullish announcements (and a mind-boggling bitcoin price prediction).
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The price of bitcoin once again crashed below $20,000 per bitcoin, dragged down by an increasingly hawkish Federal Reserve that hit the market like a “sledgehammer”, while the price of ethereum suffered following its long-awaited merger upgrade in part because of a serious warning from the regulator.
Now, as traders of BNB, XRP, solana, cardano and dogecoin desperately search for direction, blockchain researchers have warned that Ethereum’s historic shift from Bitcoin’s proof-of-work to the more energy-efficient proof-of-stake energy could lead to the dumping of 245,000 former Ethereum miners. Ethereum worth over $300 million in the market.
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The Ethereum upgrade, completed this month after years of preparation, means the Ethereum network is secure and transactions are confirmed by Ethereum holders who “stake” their coins instead of relying on cryptocurrencies. minors.
“Miners dumping their Ethereum is an overhang that we will have to overcome over the next few months in order to resume up-only mode, but it will happen,” Lucas Campbell, editor of the Without bank newsletterwrote this week.
Data from blockchain researcher OKLink appears to show that Ethereum miners have already started selling off their $300 million Ethereum reserves, it has been reported by Coindesk.
“Mining pools have fallen nearly 17,000 ethereum in the last seven days alone,” FxPro senior market analyst Alex Kuptsikevich wrote in an emailed note, warning that despite the market falling earlier in the week “the technical picture does not yet show a break in the downtrend” and “the generalized tightening of monetary policy suggests new pressures on the markets”.
In addition to a potential Ethereum selloff, markets are also accepting the US Federal Reserve’s series of huge interest rate hikes as it struggles to rein in soaring inflation, sending shockwaves in the financial markets.
This week the Fed made its third consecutive 75 basis point hike despite warnings that it could trigger a crash bigger than the 2008 financial crisis, with Fed Chairman Jay Powell telling reporters: ” We need to put inflation behind us. I wish there was a painless way to do that.”
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Meanwhile, the Biden administration sent a stark warning to the bitcoin and crypto industry following its massive $2 trillion crash and the chairman of the US Securities and Exchange Commission (SEC) United, Gary Gensler, has warned that the Ethereum upgrade could mean the cryptocurrency will become regulated as a security.
“Regulation is now high on the agenda for most of the industry, and that has been particularly highlighted in recent months,” said Timo Lehes, co-founder of decentralized finance (DeFi) infrastructure provider Swam Markets, in e-mail comments. .