Crypto Market Review, September 15
Worrying market conditions cause too much pressure on altcoins despite successful Ethereum Merge
The Ethereum merger is finally live, but the market remains anemic due to the latest CPI release that caused investor jitters. Somehow, the majority of investors in the cryptocurrency market don’t seem to care about the fundamental update as much as the volatility is still in the lower end of the range.
Altcoins hit extreme lows
In the last 24 hours, most assets including XRP, Cardano and Dogecoin have taken severe hits. The main reason behind that is massive outflows from the cryptocurrency market as investors believe we are going to see a tightening of monetary policy and reduce risk demand.
XRP has fallen below the crucial support level for the second time this month, making the possibility of a price reversal doubtful, especially with current market conditions. To stay afloat, XRP should regain around 4% of its value and return above the aforementioned support level, otherwise we will see a further plunge.
Advertisements
Dogecoin, on the other hand, does not show anything exceptional; The Memecoin price has been moving steadily in a local downtrend and has now reached its low for the year at about $0.06.
Unfortunately, the asset neither gained nor lost trading volume after the Ethereum Merge update, which shows that the majority of market participants are not interested in high-risk assets like DOGE.
ETH is going deflationary
At only 16.5 Gwei per transaction, Ethereum will remain deflationary as the total issuance of the cryptocurrency is already at -200 ETH after only 30 minutes of the Merge being live.
Unfortunately, deflation cannot be the only condition for growth, as EIP-1559 did not lead to the permanent bullrun that some Ethereum maxis were expecting. Network usage and revenue are still two main factors corresponding to the increasing market value of ETH, which has been proven in at least two market cycles.
The small 0.4% price increase of Ether in the middle of the biggest update in the network’s history is yet another confirmation of the aforementioned thesis. The cryptocurrency will most likely not see any recovery until the Federal Reserve and other financial regulators around the world keep the market under control by constantly increasing the policy rate, which affects the behavior of institutional and private investors.
Since ATH reached back in November, Ethereum lost more than 65% of its value.
Bitcoin is anemic
With all the talk and spotlight moving around the Ethereum update and the cryptocurrency itself, Bitcoin has lost some ground in both the financial and social fields as investors are not interested in the digital gold – which is not in its prime.
According to the on-chain data covered by Willy Woo and discussed in U.Today’s recent article, Bitcoin still has some room to fall, which can be confirmed by looking at the daily chart of the first cryptocurrency. A moderate 7% correction would put BTC back in the price range we saw in July at about $19,000.
