Ethereum after consolidation hits 2-month low, Bitcoin back near $18,000 By

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by Ambar Warrick – Prices fell to a two-month low on Monday as losses continued after blockchain turned to proof of stake, while the broader cryptocurrency market weakened ahead of this week’s Federal Reserve meeting.

The world’s second largest cryptocurrency fell 10% to $1,303 – its weakest level since mid-July. The token has now lost nearly a quarter of its value since the move to Proof of Stake (PoS), dubbed “consolidation,” which was launched last week.

While the move significantly reduced Ethereum’s power consumption, it was also criticized for making the blockchain less decentralized, as well as placing a high buying position to earn staking rewards, at 32 Ethereum.

Ethereum’s recent losses have now wiped out all the gains made in the run-up to the merger, as the token has underperformed the broader crypto market.

By comparison, it’s down just over 6% in the past week.

But concerns about rising US interest rates weighed more on the cryptocurrency market on Monday. Bitcoin, the world’s largest token, fell 6% to $18,811, while the total cryptocurrency market cap fell to $910 billion, according to data from CoinMarketCap.

Most of the risk-driven assets sank for the day ahead of the widely expected rally by the Federal Reserve on Wednesday. Traders are also pricing in the probability of a 100 basis point rise.

The move will raise US interest rates to their highest level since the 2008 financial crisis, which is expected to significantly affect speculative assets such as stocks and cryptocurrencies.

Cryptocurrencies in particular have been hit hard by higher interest rates this year, given that the bulk of the asset class’s stellar rally in the past two weeks has been driven by very loose monetary policy. the total Market value It’s down more than $2 trillion from record levels set last week, with no respite in sight.

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