But despite the initial good streak, Bitcoin falls 0.2% to $23,789.99, however it will close its first month in the green after three consecutive months of declines. The leader of cryptocurrencies accumulates a rise of close to 20% in July, compared to falls of 37% in June, 15% in May and 17% in April.
While, ethereum the second most important cryptocurrency rises 0.4% to US $ 1,697.28 and will close July with increases. So far this month, it has gained 51% compared to the losses of June (-44%), May (-28%) and April (-16%).
The next rate decision from the US Federal Reserve will come in September, so the cryptocurrency market has two months to define a course.
For analysts, the Fed’s rate hike indicated that “the strength or weakness of the dollar is what matters most to Bitcoin prices,” explained Naeem Aslam, head of analysis at Avatrade. “We have seen the dollar index breaking off its highs and now we see bitcoin prices going up too. It will be interesting to see if the relationship holds, as the price of bitcoin is still not too far from its critical support at $20,000,” he noted.
Today, BTC and Ethereum prices are on the rise, “But the main resistance that will clear the threat of any further downside is if BTC crosses above the $30,000 price mark and ETH breaks out to $2,000,” says Aslam.
“The focus will now be on any economic data that may conflict with the Fed’s objectives. The central bank not only has to be willing to seriously damage growth prospects in the States, but also to accept the reality of an impending recession and a labor market under great pressure, “comment from GlobalBlock.
Ethereum, no ceiling
Following the announcement of the date for the merger of Ethereum (“The Merge”), the second largest cryptocurrency in the market achieves a strong rally. Nevertheless For the co-founder of the cryptocurrency, Vitalik Buterin, prices could continue to rise. “Until ‘The Merge’ (‘La Fusión’) occurs the event is not discounted by the market”, not only in market terms but also in psychological and narrative terms. The long-awaited merger will most likely take place on September 19 and a transition to Proof of Stake (PoS) complete with the merger of Ethereum Mainnet and Beacon Chain will not happen immediately, according to CoinGape sources.
Buterin refers to the fact that the transition to PoS will not be completed with the merger of the Ethereum Mainnet and the Beacon chain. Ideally, the ‘Surge, Verge, Purge and Splurge’ phases are crucial for the ‘Merge’.
According to ‘CoinGape’ in an articlelo: “In terms of the market, people who anticipate a price increase as a result of the next merger in mid-September will have to wait 6-8 months for the price increase to actually happen.”
Ethereum (ETH) will become a deflationary cryptocurrency after the fork as supply will be reduced as a result of EIP-1559 proposing to burn ETH instead of giving it to miners.
Source: Ambito
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