Thu, March 28, 2024

Why Did Ethereum Sink 10% After Merge?

Bitcoin, ethereum, cryptocurrency

After successfully implementing its widely anticipated move to proof-of-stake, Ethereum led a slide in cryptocurrency markets on Friday. A stronger dollar and rising U.S. rate forecasts also played a role.

The second-largest cryptocurrency in the world fell 10% to $1,474.29, marking its lowest point this month. Ethereum lost all of the gains it had earned leading up to its shift away from proof-of-work. On Thursday, the integration went live, and there have been no problems. The decision to switch from mining to staking has significantly decreased the energy expenses associated with the Ethereum network. Also, should also assist the blockchain in expanding and enhancing transaction speeds ultimately.

Outlook on The Cryptocurrencies After the Merge

Additionally, ETHPoW, a hard fork of Ethereum endorsed by miners, suffered losses before becoming live. Solid U.S. economic statistics showed that the Fed would probably have enough room to hike interest rates further for the remaining of this year. Hence, larger cryptocurrency markets declined. Bitcoin is among the cryptocurrencies with the largest drop. Bitcoin dropped 2.5% to trade below $20,000. Meantime, the entire market value of all cryptocurrencies plummeted far below the $1 trillion threshold.

The greatest cause of crypto’s losses this year has been the increase in U.S. interest rates, with the industry losing about two-thirds of its market capitalization when the Fed started raising rates.

Investors were shocked by the rate increases after nearly two years of ultra-loose monetary policy, which produced enough liquidity to support cryptocurrency’s remarkable climb in 2021. But since the likelihood of a worldwide recession is continuously rising, it may be impossible to replicate such a surge soon.

YOU MAY ALSO LIKE

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

Cryptocurrencies - toncoin

Quick Look: Toncoin’s technical score of 93/100 highlights its strength, with its

Coinbase Shares Surge as it Agrees to a Settlement

Quick Look: The SEC has sued Coinbase for operating as an unregistered

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in