Ethereum and Bitcoin bulls have become worried this week as the leading cryptocurrencies dipped below $3,000 and $40,000, respectively.
Although a few sources suggest that there is an ongoing concern regarding the future price trend of the bellwether digital asset, private fund manager and CryptoQuant contributor Gaah said Bitcoin holding above $44,000 would prevent the BTC from falling further.
Here are some major events that happened last week:
- The European Union is continuing to put strict regulations on the Russian crypto market. On April 9, the EU announced that European-based businesses will not be allowed to deposit more than €10,000 worth of cryptocurrency transactions to Russian entities. The current rule applies to companies that carry out business like wallets, accounts, or custody services with cryptocurrencies.
- Bitcoin infrastructure firm Blockstream and payments company Block (formerly Square) will incorporate its mining structure with Tesla’s solar energy products. The two Bitcoin-related companies are planning to open a facility in Texas. In addition, Tesla will provide a 3.8 megawatt solar PV array and a 12 megawatt-house megapack to power the unit which will support Elon Musk’s idea of “green mining” for cryptocurrencies.
- Starbucks CEO Howard Schultz stated that the coffee production giant will join the NFT system at the end of 2022. While some associates supported this initiative some disagreed and left the company due to hesitation for the integration with NFT.
- Kraken has decided to close its headquarters in San Francisco after CEO Jesse Powell stated that the rampant crimes that have been happening in the heart of San Fransico. Powell also stated that his workers were being robbed, harmed, and harassed on their way out of the office.
Top 10 Cryptocurrencies by Market Capitalization:
|Crypto||Market Cap||24H Chg (%)||1W Chg (%)||Current Price (USD)|
|USD Coin||51,017.557.798||-1.01%||+0.06%||$ 0.9997|
Ethereum developers test Merge as ETH price plummets
Ethereum developers have long promised a huge upgrade that would take the blockchain from proof-of-work to proof-of-stake, decreasing the amount of energy used to become more eco-friendly.
Developers ran a test for the “merge” on April 11, stating that it went well despite facing some minor issues. The expected date for the merge on Ethereum has not been confirmed yet, however, developers have gotten a better understanding of when it may happen, as Tim Beiko predicts that the transition will happen in July.
When the merge is complete, Ethereum will shift completely to the proof-of-stake chain, known as the Beacon Chain.
In the coming two years, the Ether used for staking will increase from 8% to 80% which will decrease the number of ETH available in the market.
Bloomberg recently noted that ETH miners are increasingly leaving the mining industry before the merge.
Former BitMEX CEO Arthur Hayes stated that by the end of the second quarter in June, Ethereum and Bitcoin could fall toward $2,500 and $30,000, respectively.
Hayes added that “there isn’t much science to these numbers other than a gut feeling,” but also pointed out that both Bitcoin and Ethereum are highly correlated to the Nasdaq 100 (NDX) stock market index, which has dropped nearly 4% since last week.
According to Hayes, if the NDX plummets, cryptocurrency prices could also fall in tandem.
On April 12, Bitcoin’s price fell below $40,000 as the network witnessed a massive amount of profit-taking transactions. However, traders appear to be buying the dip as the keyword “buy” has been a trending term across social media platforms related to cryptocurrency.
Traders can benefit from CoinPanel’s stop-limit and stop-market orders to set a price to buy the dip at a level significantly lower than it is usually allowed on the exchange to take advantage of any market dips.
Not sure where the market is headed next? The CoinPanel platform allows traders to be market neutral, where users can choose to go long or short in the crypto spot market using the Buy Full Trade and Sell Full Trade functions. Read more about the Full Trade function here.