Bitcoin & Ethereum prices plunge, can The Merge prevent them from lowering? Despite hype and excitement built up the past few months for the Ethereum merge, BTC and ETH prices continued to plunge these past few days.
Crypto Market’s Plunge
This past weekend, the crypto saw a big drop in prices after the head of the FED made the announcement of possibly further increasing interest rates.
Bitcoin, which had been trading comfortably above $20,000 the past month had suddenly fallen again and is now trading at a price of $19,800 while Ethereum fell to a trading price of $1,450 at the time of writing.
Aside from BTC and ETH, many other cryptocurrencies in the market also saw a drop in their price, with Solana falling to a price of $30, Cardano (ADA) to $0.43, and Dogecoin fell to a price of $0.061.
Can The Ethereum Merge Help?
For months now since the announcement of the upcoming Ethereum Merge from a proof-of-work consensus to a proof-of-stake consensus taking place in September, many in the community have been looking forward to the effects of this change on the crypto market.
Back in July and early August, announcement of the Merge had caused excitement in the community, helping to drive crypto prices up during this bear market.
Because of this, some in the community claim that despite the sudden drop of crypto prices this weekend, the upcoming Ethereum merge in mid September will be able to continuously drive crypto prices up again.
However, others in the community don’t seem to convinced at this idea. Popular crypto trader and founder of Daily Price Action, Justin Bennet for example, posted on his Twitter account his bearish views on the Ethereum Merge’s effects on the market.
Valuations rarely run parallel to growth, and global macro trumps crypto macro.
— Justin Bennett (@JustinBennettFX) August 27, 2022
“Please stop assuming that the $ETH merge or #crypto adoption will prevent more downside if the global macro environment continues to deteriorate.” he stated.
These views seem to align with the current happenings of the crypto market as bullishness and excitement for the upcoming Ethereum merge have since lowered and instead, the effects of inflation and rising interest rates have caused more bearishness. This bearishness has since seemed to outweighed the rising of crypto prices that the merge has caused the last few months.
However, as the rise of interest rates are still unclear and the Ethereum merge is scheduled to take place in less than a month away, many in the community remain curious to see whether the Merge really could kickstart the next crypto bull market.