What Next for Bitcoin (BTC) and Crypto Market Following Successful ETH2.0 Merge?
Let’s check potential trends that might influence the cryptocurrency market post-Merge period.
The much-anticipated Eth2 release came and went. Meanwhile, it left market participants pondering what the upcoming trending development within the space would materialize. Charles Edwards, Capriole Fund founder, told Cointelegraph Twitter that the Ethereum Merge excitement and bullish price response somewhat held high hopes within the marketplace.
Meantime, the event succeeded, and the cryptocurrency world remains downbeat, with Bitcoin hovering beneath $20K and Ethereum under $1.5K. Ultimately, new market trends and narratives will surface, and meeting fundamentals would see traders rotating funds amidst the emergence of these new leaders. Let’s assess some potential trends.
Where Will Former Ethereum Miners Go?
The ETH blockchain successfully migrated to the PoS (proof-of-stake) model after a successful Ethereum Merge. That means miners are out of business but potentially possess their ASICs and GPUs mining equipment. Indeed, some of the miners will likely relocate to other chains instead of selling the mining gears.
Though miners are yet to settle on any chain, the top priorities are Ethereum Classic, Ravencoin, Ergo, and Flux. Each platform saw hash rate climbing to new ATH days leading to the much-awaited ETH2 release. Data from 2miners confirm this narrative.
Also, each altcoin recorded price hikes within the last month, with Ravencoin (RVN) gaining 169%, Ergo (ERG) soaring 132%, Flux +156%, and Ethereum Classic (ETC) gaining 135% within the last three months. Surprisingly, the price and hash rate plummeted drastically on 15 September.
Moreover, only RVN and Flux seemed to rebound during this publication. The upcoming months and weeks remain interesting to witness which network would attract miners and the possible impacts on the token’s price.
Cosmos Continues to Soar
The Cosmos network continues to grow, and that seems to attract buyers to ATOM. The alternative token has surged 137.5% since the $5.50 bottom of 18 June. While publishing this post, the alternative token traded beyond $16.
Analysts urge market players to watch the upcoming liquidity staking launch, ATOM’s usage as stablecoin minting collateral, Cosmos Hub2.O launch, and the ultimate revival on DeFi as long-term bullish factors for Cosmos (ATOM) price.
Buy Rumor & Sell News or Dip-Buy?
Though Ethereum’s current price remains less optimistic than ETH bulls and Merge enthusiasts had hoped, the migration to PoS seems to have succeeded. And the expected benefits will likely welcome bullish actions over time.
Jarvis Labs founder Ben Lilly stated that Ethereum investors might enjoy the coming days. He added that the primary player that might trigger crazy activity remains the mining sector. He urged market players to relax, purchase overly emotional moves and wait for potential outcomes.
The future might see ETH experiencing a supply shock before potentially becoming deflationary. Staking secures the platform while ensuring guaranteed profits on deposited tokens. Sourcing a predictable, safe yield might be more lucrative amid a downward market. Lilly trusts it would take time for the fervor Merge to cool and for market players to start leveraging the benefits that Ethereum’s PoS might offer.
What about BTC?
Bitcoin hasn’t recorded notable actions over the past sessions. The leading crypto remains range-bound within $17.6K – $24.4K over the last three months. Moreover, the 200-day MA and the resistance line that stretched from BTC’s November (last year) $69K peak capped all rallies from every range peak since 29 March.
Though extended consolidation at the prevailing range might be optimistic for alts, macro tensions could continue to restrict movements in the equities and crypto markets. The hot CPI data of 12 September might trigger aggressive rate increases by the US Fed. And the possible knock-on impact on stocks might welcome an even more sensitive spillover effect on cryptocurrency prices.
Therefore, market players remain risk-averse to most digital coins, and continued rejection around the long-term downward trendline plus further $19K support retests might ultimately lead to breakdowns beneath the yearly low.
Stay tuned for upcoming developments in the crypto market post the Ethereum Merge.
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