Things took a turn for the worse in the last seven days as major cryptocurrencies plunged. Total market capitalization is down some $115 billion in seven days as several leading coins fell by double-digit percentages. With that said, let’s unpack.
Bitcoin is trading at around $21,500, which is exactly 10% below its price at this time last week. The leading cryptocurrency by total market capitalization failed to break above the critical $25K resistance and, with the exception of a few brief periods, the price only went down.
Bitcoin dominance, the metric that tracks BTC’s share relative to that of the entire market, currently sits at 38.55%. This is about the same as seven days ago, meaning altcoins failed to capitalize on Bitcoin’s indecision.
The price of Ethereum plunged around 9.5% and is currently trading at $1,700. Many in the industry are concerned that the Merge rally is cooling off. Additionally, it is worth noting that the Chicago Mercantile Exchange also announced plans to launch options for Ether futures on September 12, which could also be part of the reason for the decline.
It is also not surprising that most of the conversations in the industry are focused on Ethereum’s transition to proof of stake, as well as the possible implications of this move. Arthur Hayes, former CEO and co-founder of BitMEX, is of the opinion that the price of ETH will skyrocket like BTC does after a halving.
Binance coin is down 12.4%, XRP – 10.6%, Cardano -11.9%, Solana – 14.1%, and so on. One of the outliers is the Shiba Inu. The Dogecoin-inspired memecoin is up 7.5% over the past week as many other memecoins related to the popular breed of dog soared. However, as the week progressed, many of them saw their gains dissipate.
Regardless, it remains interesting to see how the market will behave in the coming week and whether or not the Merge rally will accelerate once again.
Market Cap: $1,080B | 24H volume: $98 billion | BTC dominance: 38.55%
BTC: $21,544 (-10%) | ETH: $1,703(-9.5%) | ADA: $0.46 (-11.9%)
This Week’s Cryptocurrency Headlines You Can’t Miss
CME Group plans to launch options on Ether futures before the merger. One of the largest derivatives markets, Chicago Mercantile Exchange (CME), announced its plans to offer options on ETH futures. The new product is expected to launch on September 12 and is subject to regulatory review.
Vitalik Buterin and Ripple’s CTO engage in Twitter dispute over XRP. Ethereum co-founder Vitalik Buterin engaged in a Twitter discussion with Ripple CTO David Schwartz. They were discussing the claim of whether or not Bitcoin and Ethereum represent securities.
Coinbase CEO would shut down ETH staking service if asked to bow to regulators. Contemplating a hypothetical situation, Coinbase CEO Brian Armstrong said that if pressured by regulators, the exchange would shut down ETH staking services. He also said that he would refuse to censor the Ethereum blockchain using his platform’s concentrated stake in Ethereum.
HUSD Stablecoin loses dollar peg, Huobi reportedly jumped ship in April. HUSD became the latest stablecoin to lose its dollar peg as the cryptocurrency crashed below $0.90. Huobi claimed that they had abandoned the project in April, but will do their best to help restore troubled liquidity.
The merger will bring Ethereum together as a Bitcoin halving: Arthur Hayes. According to Arthur Hayes, founder and former CEO of BitMEX, Ethereum’s transition to proof-of-stake will have similar effects on the price of ETH as Bitcoin’s halving to BTC. He thinks The Merge won’t be a “sell the news” type of event.
New York judge allows Celsius to sell Bitcoin it Mines. According to the company’s financial projections, Celsius Network will run out of cash in October. That said, a New York judge approved Celius’s request to sell some of the BTC it mines during its bankruptcy proceedings.
This week we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin and Dogecoin. Click here for the full price analysis.
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Cryptocurrency charts from TradingView.