Ethereum miners have been shifting their mining hardware to other PoW blockchains like Ergo, and Ethereum Classic.

Bitcoin and Crypto Market Watch Monday, September 19, 2022 - 18:16

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The Merge is finally complete and live. The Fed is likely to hike the interest rates once again as we know well that last week’s ‘above expectations’ data on CPI inflation rates will not ease down the Fed. The market seems to be in freefall for days, and narratives and trends around the much-hyped events are bound to change. What will be the likely turn of events for the market and its players in the coming days, now that we have been successful in achieving a ‘for-long-envisioned’ feat? Let’s find out. 

Ethereum (ETH) started its downfall before even The Merge happened and was trading at $1.3k, after a 24% decline in the last 7 days. Bitcoin (BTC) saw 15% weekly losses and was trading at $18,750 at the time of writing. Talking about the total market cap - the picture looks bleak with a 6% loss since yesterday, and the market cap now stands a little above $900 billion.

Where will Ethereum miners migrate? 

For ETH miners, their hardware is only compatible with proof-of-work (PoW) protocols. With proof-of-stake (PoS) finally active, time is running out for ETH miners to make a move. They have been actively shifting their mining hardware to other PoW blockchains like Ergo, Ethereum Classic, Flux, and RavenCoin. The proof of it is the massive surge in the hash rate of these networks before and after Merge. In addition to that, ETH miners have been selling ETH bringing the price before $1,500. Below is the hash rate graph depicting the Ethereum Classic hash rate reaching an all-time-high (ATH) before the Merge.

<source: cointelegraph>

The case has been similar with all other PoW blockchains. Besides the hash rate, their prices have also seen rallies during the past month. Past 90-day data shows RavenCoin surged by 169%, Ergo by 132%, Flux by 156%, and Ethereum by 135%. 

Does the trading tactic of Buying the rumor and selling the news still hold relevance? 

We are definitely seeing the Merge hype waning and ETH prices going down against the expectations of investors and traders. Experts suggest that over time the shift to PoS will yield bullish momentum for ETH. Post PoS, ETH will become deflationary with time. Also, staking would also provide those taking part in it with guaranteed returns. The market has been stuck in a downtrend for months now, and staking could be, for once, a great way to guarantee regular gains, just like interest on treasury bills.

<source: binance>

What holds for Bitcoin? 

Not much has changed for BTC, trading range bound between $17.4k and $24.4k for the past 90 days. There have been a few rallies, but the price rise has always been capped by the 200-day moving average. The overhead resistance has been expanding since BTC reached its ATH in November.

The CPI inflation data release caused more corrections in BTC prices, and the anticipation ahead of the Fed’s possible interest rate hike has further mellowed trader interest in BTC and the overall crypto market, which is considered riskier. BTC might retest its yearly lows now that it has plunged below the $19k support.

The Merge is barely a few days old, and a lot will be unveiled in the coming days. We will keep an eye on the developments and bring the latest in store for you to read and enlighten yourself before you tread in the crypto waters. 

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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