Cryptocurrency markets open in the green as the global crypto market cap is above $1 trillion. After the cryptocurrency market exited bearish territory last week, Bitcoin and Ethereum have shown significant upside this week, with BTC up over 13% while Ether is up 11.67%. We’ll likely continue to see bullish momentum for crypto markets, especially for ETH, as the merge is only two days away. If you’ve been hesitating about opening a position for ETH, now is an excellent time, as the second-largest cryptocurrency will likely surpass the $2k mark once the merge is complete later this month. Let’s look at any relevant Bitcoin and Ethereum news moving the markets this week.
Key Points:
- The global cryptocurrency market cap is at $1.07 trillion, signaling bullish sentiment.
- Bitcoin and Ethereum saw significant upside this week in response to the bullish momentum for global crypto markets.
- CPI numbers are scheduled to release tomorrow, providing insight into global markets and the Fed monetary action.
- Ethereum’s merge is two days away as the network prepares for the final upgrade.
- ETHUSD will likely trade above $2k in the coming weeks as the merge will get priced in.
Bitcoin News
Bitcoin continues to trade based on the global stock market action, which was highly bullish last week. In the past five days, the NASDAQ is up 4.72%, S&P 500 is up 61 points, and the Dow Jones is up over 350 points, signaling bullish momentum for global markets.
With global markets up last week, it is no surprise that Bitcoin also saw substantial price growth of over 13% in the past seven days, contributing to the global market capitalization increase of the crypto market to levels above $1 trillion, placing the markets in bullish territory.
The big news this week is the release of the CPI numbers on Tuesday, September 13th, which will set the scene for the Federal Reserve’s monetary action this month to combat inflation.
Last month’s CPI numbers proved favorable, with a net inflation rate of zero, and it’s yet to be seen if the Fed’s aggressive monetary action of raising interest rates over the past several months will contribute to a net decrease in CPI numbers.
Favorable data tomorrow could spell additional bullish momentum for stock and crypto markets, but regardless of the outcome, the Fed will likely move forward with raising interest rates this month.
Ethereum News
Ethereum’s merge is officially two days away, and all eyes are on the cryptocurrency as its network prepares for one of the most significant updates in its history.
Ethereum’s merge will transform Ether into a fully proof-of-stake consensus model, making it the largest decentralized network that’s also eco-friendly, eliminating the need for wasteful hash mining using ASICS and GPUs.
While the miners aren’t very happy with the merge, they will likely either move to Ethereum Classic or redistribute their hashing power among the dozens of other available EVM-compatible networks.
Ethereum’s trading volume shows a significant increase in the past 24 hours, up over 26%, currently at $15.8 billion. In addition, with a global market capitalization of $213 billion, compared to Bitcoin’s $426 billion, Ethereum continues to rise in valuation compared to BTC.
While “The Flippening” is quite a ways away, post-merge Ether could show significant price growth that could bring it closer to overtaking Bitcoin in the next several months.
Lastly, Ethereum gas fees have already calmed down significantly, as the overall usage and hype surrounding cryptocurrency has diminished considerably due to the bear market this year. After the merge, we can see even lower gas fees which will open up significant opportunities for developers and additional scaling capabilities for the chain.
ETHUSD will likely trade above the $2k range in the next several weeks/months, making now an excellent opportunity to open a long-term position.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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