Bitcoin and Ethereum prices stagnated for the last day after showing some life on Monday. The good news is that trading volume has remained above average for both BTC and ETH, which could indicate a potential bull run later this week. Let’s look at the recent news that has impacted the markets.
Important Notes:
- Some bitcoin miners file for bankruptcy, but some may raise additional funds.
- Several cryptocurrency companies manage to attract millions in venture capital funding despite the bear market, proving the long-term viability of the crypto sector.
- Bitcoin impacted by S$P 500 crash
- The Ethereum merger has drawn criticism for its immediate results. Still, the long-term effects of the merger will give Ethereum much-needed scalability and the ability to sustain a sizable user base.
- While the cryptocurrency market is still bearish, the large trading volume could fuel a bull run later this week.
Bitcoin News
While a few bitcoin miners, including Compute North, filed for bankruptcy last month as a result of the bear market, other miners have been able to raise funds despite the low prices.
according to a coindesk report, Aspen Creek Digital Corp. (ACDC), a solar-powered bitcoin miner, has raised $8 million in Series A funding for its mining operation.
Matching the report:
“The miner will use the proceeds to fund its second mining facility in Texas, which will have 30 megawatts (MW) of mining capacity and will be located adjacent to an 87 MW solar farm.”
The fact that mining company Aspen Creek was able to secure power for its mining operation before attempting to raise capital from investors is an advantage. Despite the declining market, a mining operation could still be profitable and Bitcoin miners can make some profits.
Speaking of fundraising, loud decrypt, Bitcoin payments company Strike raised $80 million in its Series B funding round. The company plans to use the money to expand its relationships with some of the best-known retailers.
Strike uses Bitcoin’s Lightning network, which enables faster and cheaper transactions. A proven way to build a thriving ecosystem and provide much-needed bullish support for cryptocurrency markets is to launch Bitcoin payments at some of the largest retailers in the market. Eventually, if Strike can accept cryptocurrency payments using Bitcoin, it will be much easier to accept payments using other crypto assets such as stablecoins, Ethereum, etc.
With the S&P 500 making a new low, pushing down the price of BTC in the process, it is clear that a correlation between stocks and cryptocurrencies currently exists. In response to the S&P 500 collapse, Bitcoin quickly fell to the $18,000 level after making many positive advances above the $20,000 level today.
Ethereum post-merge news update
Many people speculate on Ethereum because the price of ETH has remained almost unchanged since the network merger.
The integration went smoothly, but now the choice is up to Ethereum. In addition to the fact that the SEC now considers Ethereum a security, the merger essentially pushed miners off the network and potentially created a lot of selling pressure in the market.
It is evident that something dramatic had to be done to the Ethereum network in order for it to be able to support a large number of users, even if the merger may cause temporary uncertainty and disruption in the markets.
While gas prices are manageable now, the next bull market for Ethereum’s network will need to be able to handle a significant spike in transactions without significantly increasing gas prices.
Ethereum is currently trading at $1,300, up 5% over the last day, with a 24-hour trading volume of $16 billion. The current global crypto market valuation of $926 billion shows that the bears are still in charge as it sits below the $1 trillion line.
Disclosure: This is not trading or investment advice. Always do your research before buying cryptocurrencies or investing in projects.
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