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


  • 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

Recommended content


Recommended Content

Editors’ Picks

Why Bitcoin remains sideways despite record BTC ETF inflows

Why Bitcoin remains sideways despite record BTC ETF inflows

Bitcoin's relative range-bound movement in the past few months, despite record net inflows of $12 billion across spot Bitcoin ETFs, has sparked worry among investors. Many analysts predicted a highly bullish outlook for Bitcoin when the ETFs launched.

More Bitcoin News

UwU Lend offers bounty reward to uncover its exploiter

UwU Lend offers bounty reward to uncover its exploiter

In a Thursday broadcast, UwU Lend consents to a $5 million bounty reward in ETH to whoever discovers the identity of the hacker(s) who breached their protocol. The DeFi protocol has reportedly suffered another breach, which cost $3.72 million.

More Cryptocurrencies News

AAVE price tumbles 20% in 2024 despite doubling its total value locked

AAVE price tumbles 20% in 2024 despite doubling its total value locked

AAVE, a decentralized crypto lending platform, has noted a massive spike in the total value of assets locked (TVL). Rising TVL is considered indicative of higher relevance among market participants and trust in the platform. 

More Aave News

SEC Chair says Ethereum ETF S-1 approvals likely to come over the summer

SEC Chair says Ethereum ETF S-1 approvals likely to come over the summer

Ethereum was down nearly 5% on Thursday as SEC Chair Gary Gensler suggested spot ETH ETFs will likely receive approval over the course of the summer. The update was accompanied by mixed sentiment from derivatives traders.

More Ethereum News

Bitcoin: Is BTC ready for a new all-time high?

Bitcoin: Is BTC ready for a new all-time high?

Bitcoin whales have increased buying activity to the highest level in two months. Investors show no signs of FOMO despite BTC’s recent tussle with the  $70,000 mark. US spot Bitcoin ETFs experienced a notable uptick in activity, reflecting growing market interest.

Read full analysis

BTC

ETH

XRP