Cryptocurrency markets have been trading sideways with no significant change for Bitcoin, Ethereum, BNB, and other significant crypto assets and have been holding support since Friday. Since the world’s markets are closed today and Bitcoin is tied to the stock market, we won’t see any movement today. BTC is simply waiting for the next move.
- While ETH hovers above $1,300 and BTC slips below $20k, cryptocurrency markets are losing steam.
- This week’s most significant events for the cryptocurrency markets included a hack of the Binance Bridge and a fine imposed by the SEC on Kim K.
- The Ethereum merger is not without flaws and is increasing block censorship.
- This weekend’s price drop will likely be followed by a recovery the following week.
Bitcoin News Update
While the price of Bitcoin has dropped by about 1% and is now below $20k, the movement is not very significant, and a modest bearish trend is to be anticipated over the weekend.
In addition, there have been some negative developments in the cryptocurrency markets this week, such as Kim Kardashian’s $1.2 million SEC fine for advocating crypto security and the $120 million Binance Smart Chain bridge hack, which forced BSC to halt its chain and freeze the stolen assets to facilitate recovery efforts.
With so many hacks, legal lawsuits, and blockchain development, there is never a dull week in the world of cryptocurrencies. There have been plenty of bad stories this week, but the cryptocurrency market has remained steady despite them.
We can only pray that the coming week will bring us some good news to give the cryptocurrency markets a chance to build momentum for a bull run.
Ethereum’s Post-Merge News Update
There are no new developments from Ethereum this weekend either, as Bitcoin appears to outperform ETH. The network has significantly improved as a result of Ethereum’s network merger. However, there are certain negatives as well. Since the chain is proof of stake and more than half the validators are in the US, the SEC has asserted explicitly that ETH is a security. The problem of block censorship in ETH has also grown due to the merge because validators and nodes now have more ability to successfully censor transactions.
However, crypto maximalists will tell you that blockchain is built on decentralization, which is a holy concept in their eyes and shouldn’t be in a gray area. Whether that is a good thing or not is up for debate.
The fact that most crypto assets have had large value losses this year suggests that bitcoin is generally underperforming as an inflation hedge against the dollar. A stronger dollar, cryptocurrency’s high volatility, and the fact that most investors still view cryptocurrencies as digital gold only serve to maintain the peg of cryptocurrencies to conventional stocks and assets are some of the reasons why cryptocurrencies aren’t serving as an effective inflation hedge, according to a Forbes report.
Although ETH is still above $1,300, the fast-decreasing trading volume may cause it to drop as low as $1,200 by Sunday before rising again the following week.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.