$69 billion wiped out of global crypto market 24 hours before Ethereum Merge


Share:
  • The global crypto ecosystem witnessed a steep decline in market capitalization, $69 billion wiped out. 
  • Ethereum Merge is less than 23 hours away and the altcoin continues to show major relative strength. 
  • Ethereum’s social activity has peaked over the last three months, with a spike in popularity among ETH holders and the crypto community. 

Ethereum Merge is less than 24 hours away and the crypto ecosystem has witnessed a steep decline in its overall market capitalization. $69 billion have been wiped out of the global market cap ahead of the historic event for Ethereum. The release of surprisingly high CPI data hit risk assets such as Ethereum and compounded a rising negative bias towards Bitcoin and other cryptocurrencies. 

Also read: Ethereum v. Bitcoin: ETH is winning despite BTC price rally to $22,000

Crypto market cap nosedives as anticipation for Ethereum Merge builds

Ethereum Merge is one of the key events in the crypto ecosystem. Traders, holders and developers have anticipated the Merge and its impact on the Ethereum blockchain. The milestone event is less than 24 hours away. The Merge is expected to change the way Ethereum is created and its consumption of electricity is expected to reduce 99.95%. 

The transition from proof-of-work to proof-of-stake is key to holders. It is considered a bullish catalyst by traders, as anticipation around the event builds, traders show a negative bias towards Bitcoin and other altcoins. 

Ethereum’s social activity hit a peak

Based on data from crypto intelligence tracker LunarCrush, Ethereum’s social activity has accelerated over the last three months. Social activity is a measure of Ethereum’s mention across social media platforms like Twitter. 

Activity has hit a peak as Ethereum gets ready to shift its consensus mechanism in less than 24 hours. What’s more, there is an ETHW fork within 24 hours of the Merge according to the announcement by Ethereum proof-of-work handle on Twitter. 

Ethereum social activity

Ethereum social activity 

Analysts predict a decline in Ethereum price

FXStreet analysts evaluated the Ethereum price trend and predicted a decline in ETH price. Ethereum price could nosedive to the $1,280 level as bears take control of leading cryptocurrencies like Bitcoin and ETH. 

The analysts’ forecast is bearish despite the bullish sentiment surrounding the Merge for technical reasons. After being a short term uptrend ETH price has rolled over following the release of higher-than-expected CPI data from the US which hit all risk assets including cryptocurrencies. The other reason is uncertainty surrounding the hard fork and the launch of the ETHW chain.

For more information, key price levels and more, check the video below. 

To learn more about the Merge, the event's impact on the Ethereum blockchain, check the timeline below:

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price could retrace to $42,000 if US Nonfarm Payroll comes in at 180,000

Bitcoin price just like other assets, is highly impacted by the macro-financial developments. This includes the Nonfarm Payrolls (NFP) report released by the BLS of the United States. This time around, the NFP data is expected to cause a dip in the value of BTC.

More Bitcoin News

Ripple is now only 3% away from becoming a bigger entity than Binance Coin

Ripple is now only 3% away from becoming a bigger entity than Binance Coin

Ripple has overcome a lot of obstacles on its way to becoming the world’s fifth-largest cryptocurrency, as witnessed by the recent rise in XRP price. The native token of the world’s biggest crypto exchange, Binance Coin, on the other hand, has been moving in the opposite direction.

More Ripple News

Ethereum leads altcoins north as Bitcoin halts amid bull trap fears

Ethereum leads altcoins north as Bitcoin halts amid bull trap fears

Ethereum (ETH) price remains northbound, unrelenting despite the king of cryptocurrency, Bitcoin, showing weakness. Behavior analytics tool Santiment observes that Ether and altcoins are on a tear even as BTC momentum fades.

More Ethereum News

BTC headstrong as Spot ETF talks reach technical stage

BTC headstrong as Spot ETF talks reach technical stage

Bitcoin remains steadfast on the higher timeframe, amid news that spot BTC exchange-traded funds (ETF) discussions are now at the technical stage of approval. Specifically, talks with Spot BTC ETF issuers have advanced to key technical details, with Reuters indicating that it could signal a shift toward a potential approval.

More Cryptocurrencies News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP