It has now doubled from the low point in June at the time of the implosion of various crypto lending platforms. For analysts, Ethereum’s momentum is given by the merger. It is a fundamental reconfiguration of Ethereum that changes it to a proof-of-work proof-of-stake mechanism. That will reduce power consumption by 99.9% and will be a platform for future upgrades.
The rise in crypto assets would be a second-round effect of the recovery of the stock market in the United States, after the main indices such as the Nasdaq, the S&P 500 and the Dow Jones have had increases of between 5% and the 15% in the last three weeks. In this scenario, cryptocurrencies would be poised to outperform only “if stocks have bottomed out,” said Mike McGlone, an analyst at Bloomberg Intelligence.
“The 2022 bear market has historically been a negative for the digital asset space,” the analysts wrote in a note, noting, however, that “after such a sustained period of risk-off sentiment, attention has turned focuses on whether this is a bear market relief rally or the start of sustained bullish momentum.”
Still, while cryptocurrencies have recovered, they are still well below their highs reached towards the end of last year.
“Cryptocurrencies have more volatility, so they’re riskier, and it would make sense that investors need to rebuild confidence after the downdraft they’ve suffered,” said Katie Stockton, founder and managing partner of Fairlead Strategies, a research firm. focused on technical analysis.
More notes on cryptocurrencies
Cryptocurrencies: time to invest?
BlackRock partners with Coinbase and shares soar almost 40% in two days
Ethereum, closer to overcoming Bitcoin: what are the reasons
Source: Ambito
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