The Merge hasn’t pushed crypto prices as expected. The third week of September started with more reds and greens than expected. Market cap has dropped and the entire market plunged.
Many crypto assets lose every hour. Many cryptocurrency exchanges have begun to forcefully liquidate leveraged positions. According to Coinglass,The total liquidated amount has already reached $431.51 Million, and 130,087 traders were affected.
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Bitcoin Price Plunged
The Bitcoin price is currently at $19 326. This represents a loss of 2.38% in just 24 hours. BTC’s one-hour price gains show progress of 1.07% but the currency has fallen 13.58% within a week.
Bitcoin was trading at over $20K between September 10 and 14, just before the Ethereum merge. It lost control of the price and dropped to $19 701. This level was held until September 17, when the closing price of $20k.
However, BTC jumped to $19k in September’s third week as overall markets opened in red.Source: BTCUSD Price Chart from TradingView.com
Ethereum crashed after the Merge
After losing 4.26% within 24 hours, the Ethereum price is now at $1.359.13 on September 19. However, this is only a part of the story. ETH’s price crashed after the Merge on September 15. Ether had traded at $1700K in September 10, September 11, and September 13, but plummeted to $1574 on September 14, the day prior to the merger.
At the close of the market on September 15, the Merge day, Ether’s price fell to $1432 and continued at that price until September 18. After the Merge day on September 15, Ether’s price fell to $1432. The market remained open until September 18.
Ethereum’s price data revealed that the cryptocurrency has dropped 21.52% during the entire week. There is some hope, however, as the one hour gain for Ethereum is now green.
Red Market, why?
According to market analysts, the reason for the decline was macroeconomic. This September’s CPI data is the first. It indicates that inflation remains high and the Federal Reserve will need to raise interest rates. Many market watchers are already mentioning that the Feds will pursue a 100-point, which hasn’t been reached in forty years.
The fear of continuing inflation and the Feds’ aggressive effort to fight it has caused panic in the market. The current liquidations on exchanges won’t help. It could actually cause more problems in the market.
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Although some people talk about August’s CPI and the imminent rise in interest rates, others point out that the Ethereum merger did more harm than good. Some analysts have stated that the upgrade was overhyped, and recent events have proved that it was a “buy the rumor, sell the news.”
Nobody knows what the market is going to do in the coming days. However, many expect further bearish movement after September 21’s Feds Meeting.
Featured image taken from Pixaby. Chart from TradingView.com