WEB3
by BSC News
September 13, 2022
Our financial market analyst Chung Yee says: The crypto market is exuberant as The Merge draws closer, pushing the total market cap to $1.12 trillion.
Bitcoin ($BTC) is leading the pack with an 11.8% gain from a week ago as the crypto market heats up to one of the most critical upgrades in the crypto space.
The Merge is set to take place on Sept. 15 around 5 a.m. UTC and will be monumental. Ethereum ($ETH), the second-largest crypto asset by market cap, will change from its current ProofofWork (PoW) to a ProofofStake (PoS) consensus protocol.
The Merge is highly anticipated because it removes some of the hurdles to adoption for institutions. These concerns are:
The network becomes more decentralized and there will be a broader pool of validators. Anyone can now participate as a validator without the need to invest in the hardware required for mining.
Despite the renewed confidence in crypto assets following the recent rally, the prospect for risk assets remains bleak as the U.S. Federal Reserve (Fed) is still battling with inflation. August’s Consumer Price Index (CPI) will be released Tuesday and some profit-taking might take place.
Some market observers believe that the market bottom has formed but the road ahead appears bumpy as several key levels must first be breached before a trend reversal can be confirmed. One of the most crucial indicators is the 200-week moving average of $BTC which sits at $23,200.
Bitcoin’s hash rate has hit another all-time high, making the network stronger and more resilient than ever. Hashrate is an important indicator that the network is alive, robust, and secure. It can also be seen as a vote of confidence for the network.
Bitcoin is primed for another macro uptrend as it draws closer to the halving event, which is expected to take place on March 1, 2024. Bitcoin’s halving event is usually the catalyst for significant price rallies. Institutions are now considering crypto assets as a viable asset class and will be prepared to allocate a certain portion of their reserves in this new asset class.
This trend will likely continue as the fear of dollar’s devaluation brought about by inflation is likely to be a major concern. Public companies such as MicroStrategy is leading the way with a very aggressive and bullish positioning.
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