$30 billion exits cryptocurrency market in 24 hours as Ethereum meltdown fails to trigger recovery. – The Inquirer 🇫🇷

Indeed, as of September 16, the capitalization of the global crypto market stood at $958.83 billion, down approximately 3.2% or $32.24 billion from $991.07 billion. recorded on September 15.

One-day global cryptocurrency market capitalization chart. Source: CoinMarketCap

Prior to the Merger, part of the crypto market had projected that the event would likely cause the price of Ethereum to skyrocket. However, none of these projections have yet materialized 24 hours later, with ETH trading at $1,400 at press time, down almost 10% over the period.

1-day Ethereum price chart. Source: CoinMarketCap

Similarly, bitcoin (BTC) is trading in the red, falling below the physiological level of $20,000. At press time, the crypto was valued at $19,700.

Impact of the merger

Although the merger does not seem to have a positive short-term impact on the general cryptocurrency market, the sector will need another bullish narrative to spark a future rally.

With the successful merger, the bulls seem to have taken over, a factor that potentially indicates that the upgrade was a “buy the rumour, sell the news” event.

This scenario is partly highlighted by an earlier report from Theinquirer which indicated that Ethereum inflows on exchanges began to increase on September 12, rising to around 700,000 ETH, before increasing to around 1 .7 million ETH on September 14.

At the same time, Ethereum’s social dominance also surged ahead of the upgrade. In particular, on September 13, the social dominance of the asset stood at 14.79% after climbing by +23.19% in just one month.

Similarly, Meltem Demirors, the chief strategy officer of crypto asset management firm CoinShares, pointed out that factors in the macroeconomic environment will potentially deter new capital from entering Ethereum, while referring to the update as a “rumour-buying, news-selling event”.

All eyes on the Fed

At the same time, the sell-off appears to be stemming from broader macro factors, with soaring inflation being the main trigger. Following recent inflation figures, the Federal Reserve is expected to raise interest rates to contain the situation.

Therefore, the upcoming FED meeting is seen as a key indicator for the market price, as crypto trading expert Michaël van de Poppe points out.

Overall, it should be noted that crypto analysts have maintained that the Merger will have a long-term bullish impact on the general crypto space.

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$30 billion exits cryptocurrency market in 24 hours as Ethereum meltdown fails to trigger recovery. – The Inquirer 🇫🇷

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