Post-Merge Crash: Bitcoin (BTC) Drops Below $20K – Below $1.5K Ethereum
Excitement about Ethereum’s move to Proof of Stake (PoS) appears to be already waning, as the crypto market is seeing a downturn after the merger. Over the past 24 hours, the price of Ethereum (ETH) has fallen by 9% to fall below $1,500.
Ethereum (ETH) 24 hour price chart. source: CoinMarketCap
ETH is trading at around $1,460, at the time of writing, for the first time since August 30. The price crash can be linked to traders selling short on ETH, causing Ether futures funding rates to drop below zero – their worst ever recorded.
Bitcoin (BTC), like Ethereum, was not rescued from a post-consolidation crash, as it fell to $19,600 two days after threatening the $20,000 support line. Bitcoin is now trading at $19,700 at the time of writing, having lost 2.3% in the past 24 hours.
Bitcoin’s downward spiral began on September 13, following the release of surprising inflation data in the US. Since then, the world’s largest cryptocurrency has lost more than 13% of its value.
Gary Gensler of the Securities and Exchange Commission says that proof of ownership of assets can be securities
Speaking after Ethereum to mergealbeit without a direct reference to ETH, Securities and Exchange Commission Chairman Gary Gensler He said That Proof of Stake (PoS) cryptocurrencies can qualify as securities.
Gensler highlighted that staking, which allows users to earn passive returns on their holdings, could see that POS projects qualify as securities under “Howey’s testGensler’s comments came the same day as Ethereum to merge.
The SEC chief added that platforms that provide staking services to clients “look very similar with some changes in the lending rating.”
The Howey’s test An asset is considered an investment contract if the investors finance a financial project with the intention of making profits. If PoS encryption passes this test, it will be subject to federal security laws.
Gary Gensler’s comments, and the ongoing SEC case with Ripple, suggest that PoS crypto could face greater scrutiny.
FTX emerges as top bidder in Voyager Digital’s bankruptcy auction
Bankrupt crypto lender, Voyager Digital has Work started Its assets are in New York, according to a September 13 court filing. The auction is being conducted by Moelis & Company, Voyager’s investment bank.
Auction details have been reported on court document As part of the Voyager bankruptcy case. According to a Voyager spokesperson, about 88 parties are participating in the auction, of which 22 are active in the discussions.
FTX, Binance and Wave Financial, a digital asset investment firm, are reportedly part of the auction. It has been revealed that Sam Bankman-Fried FTX crypto trading platform is the best bidder to buy Voyager Digital assets.
The amount that FTX put in the auction was not disclosed. According to the spokesperson, the auction results may be revealed before the September 29 court hearing.
The asset sale by Voyager aims to provide liquidity to its clients, whose funds have been frozen since July 1.
Crypto Lender Celsius Files For Permission To Sell Stablecoin Holdings
The embattled crypto lender Celsius Network, who introduced Chapter 11 Bankruptcy In July, he filed an application with the United States Bankruptcy Court for the Southern District of New York to sell its stablecoin holdings.
According to the court’s claim Powered by the Celsius legal team from law firm Kirkland & Ellis, the cryptocurrency lender owns 11 different stablecoins, valued at approximately $23 million.
If bankruptcy judge Martin Glenn approves the application at the October 6 hearing, the proceeds from stablecoin sales will be used primarily to support Celsius’ existing operations, according to Section 363 of “bankruptcy law“.
The move comes on the heels of Celsius’ recent court filing, and she pledged her readiness in part Refund to Custodial accounts and asset withdrawals, and for Custodial Assets of less than or equal to $7,575.
Selling stablecoins aims to generate liquidity to fund Celsius’ operations as it explores ways to repay creditors.
Dogecoin (DOGE) is the second largest PoW, a cryptocurrency that precedes Ethereum Classic (ETH).
distance successful promotion From the Ethereum Network to Proof of Stake (PoS), the popular meme coin Dogecoin (DOGE) has risen, becoming the second largest Proof of Work (PoW) cryptocurrency by market cap.
Although Bitcoin (BTC) decisively takes the top spot, the meme coin is currently outperforming notable assets such as Ethereum Classic (LTC), Litecoin (LTC), and Monero (XMR), which are ranked third, fourth and fifth respectively.
Dogecoin (DOGE) is ranked as the 10th largest cryptocurrency overall, with a market capitalization of $7.92 billion. This places it comfortably above Ethereum Classic, which has absorbed many of the miners migrating from the Ethereum network.
Launched in 2013 by Billy Markus and Jackson Palmer, Dogecoin has gained wide acceptance, especially since Billionaire and Tesla CEO Elon Musk has embraced it as the only coin to sell a premium collectible ‘Cyberwhistle’.
Ethereum’s transition to PoS, which reduced its power consumption by 99.9%, is likely to increase pressure on PoW-powered crypto networks like Bitcoin to also make the transition to the PoS model.