Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD) – Ethereum gains against Bitcoin, Dogecoin as it nears key milestone: Analyst warns it could go downhill post-merger
Major coins were in the green on Wednesday night, as the global cryptocurrency market cap rose 1.5% to $1 trillion as of 8:20 p.m. EDT.
| coin | 24 hours | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 0.3% | 4.7% | $20,264.02 |
| ether ETH/USD | 4.4% | 0.7% | $1,644.77 |
| Dogecoins DOGE/USD | 2.6% | 0.1% | $0.06 |
| cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Celsius (ONE WAY) | +27.8% | $1.87 |
| Raven Coin (RVN) | +12.01% | $0.07 |
| Ethereum classic (ETC) | +10.5% | $39.20 |
See also: Best Crypto Debit Cards
Why it matters: Ethereum’s intraday gains surpassed Bitcoin’s hours ahead of “The Merge” — which is transforming the second-largest cryptocurrency from a proof-of-work framework to a proof-of-state mechanism.
Cryptocurrencies continued to track US stock futures, which were rising at the time of writing. On Wednesday, the S&P 500 and Nasdaq closed up 0.3% and 0.7%, respectively, after a volatile session.
The August Producer Price Index (PPI) data was released on Thursday, falling 0.1% month-on-month, compared with a 0.4% drop in July.
Investors are awaiting a slew of economic data such as retail sales, jobless claims, import prices and the Philadelphia Fed manufacturing survey on Thursday morning.
“Bitcoin’s best-case scenario was a Fed soft landing, and now that seems less likely as the risk of a recession grows. A broader slowdown is hitting Wall Street and that should keep Bitcoin grounded and stuck this crypto winter,” he said Edward Moyaa senior market analyst OANDAin a note Benzinga saw.
Commenting on the upcoming Ethereum merger, Moya said: “The Ethereum merger should be a defining moment for the cryptoverse, and its current weakness is more a reflection of investor expectations that we will see a classic sell-the-event reaction once the merger is complete.”
“Ethereum will likely continue to degrade from Bitcoin’s lead as the top crypto, but the odds of a ‘flip’ will have to wait a few more years.”
A Twitter poll conducted by Justin Bennett seems to agree with Moya’s assessment that The Merge is a sell-the-event phenomenon as far as price action is concerned.
Will $ETH pump or deflate as #Ethereum merge upgrade completes?
— Justin Bennett (@JustinBennettFX) September 14, 2022
A majority, 49.2%, of 2,330 respondents in the trader survey said ETH will fall after the upgrade, while 29.2% said it would surge. 21.6% said it was a “non-event”.
Michael van de Poppe tweeted that Ethereum’s funding rate is “ultra negative” because people have spotted ETH for an expected airdrop.” People are shorting $ETH to cover their positions. Risk-free trading.”
Why is the funding rate extremely negative on $ETH?
– People spotted $ETH for the airdrop.
– People are hedging shorts on $ETH to cover their positions.
Risk Free Trading.
— Michaël van de Poppe (@CryptoMichNL) September 14, 2022
The cryptocurrency trader said in a separate tweet that ETH’s funding rate is at a negative 0.2% as “everyone is shorting the merger.”
Funding rate for #Ethereum is -0.20% as everyone is shorting the merge.
— Michaël van de Poppe (@CryptoMichNL) September 14, 2022
Negative funding rates below 0 mean short sentiment is dominant, while rates above 0 suggest longs are dominant.
Willy Woo tweeted on Wednesday, “Historically, bottoms have coincided with short-term holders having a lower cost basis than long-term holders.”
Have we bottomed out?
Historically, bottoms have coincided with short-term holders having a lower cost base than long-term holders.
We’re close, but not there yet. A little more time to burn IMO.
(In 2015 we finally capitulated in this area, in 2019 it was the absolute low.) pic.twitter.com/vqiU8SqMDh
— Willy Woo (@woonomic) September 14, 2022
“We’re close, but not there yet. A little more time to burn,” said the popular bitcoin analyst.
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