What's Next for Bitcoin (BTC) After ETH2.0 Merge?

The long-awaited release of Eth2 has come and gone without incident. In the meantime, it left market participants wondering what the forthcoming trending development would be inside the industry, and they were left wondering whether or not it would materialize.

Let's have a look at some of the possible trends that might have an impact on the cryptocurrency market after the Merge period.

The long-awaited release of Eth2 has come and gone without incident. In the meantime, it left market participants wondering what the forthcoming trending development would be inside the industry, and they were left wondering whether or not it would materialize. According to Charles Edwards, the founder of Capriole Fund, who was speaking to Cointelegraph Twitter, the enthusiasm surrounding Ethereum Merge and the bullish price response partly held high hopes inside the market.

In the meanwhile, the event was a success, but the cryptocurrency industry is still in a pessimistic mood, with Bitcoin's price remaining below $20,000 and Ethereum's price remaining below $1,500. In the end, new market trends and narratives will develop, and if fundamentals are met, traders will rotate their funds in response to the emergence of new market leaders. Let's have a look at some probable trends, shall we?

Where Will Former Ethereum Miners Go?

After a fruitful Ethereum Merge, the ETH blockchain was able to make the transition to the proof-of-stake (PoS) architecture without any problems. This indicates that miners are no longer in business but may still have possession of their specialized mining hardware, such as ASICs and GPUs. In point of fact, it is highly possible that some of the miners may move on to other chains rather than selling their mining gear.

Even though miners have not yet decided on a single chain, Ethereum Classic, Ravencoin, Ergo, and Flux are now the most important chains. Hash rate on each platform increased to new ATH days, which ultimately led to the much anticipated release of ETH2. This narrative is supported by data from two miners.

In addition, the prices of all alternative cryptocurrencies have increased over the course of the past month, with Ravencoin (RVN) seeing a price increase of 169%, Ergo (ERG) experiencing a price increase of 132%, Flux (+156%), and Ethereum Classic (ETC) experiencing a price increase of 135%. On September 15th, both the price and the hash rate took a significant nosedive for no apparent reason.

In addition, it seemed as though RVN and Flux were the only ones to make a comeback during this publication. It will be fascinating to see which network succeeds in luring miners in the next months and weeks, not to mention the effects that this could have on the price of the coin.

Cosmos Continues to Soar

The expansion of the Cosmos network is continuing, and this factor appears to draw purchasers to ATOM. Since reaching a low of $5.50 on June 18th, the alternative token has seen a price increase of 137.5%. During the time that this post was being published, the alternative token surpassed $16.

As potential long-term bullish factors for the Cosmos (ATOM) price, market analysts strongly encourage participants to keep an eye on the imminent introduction of liquidity staking, ATOM's utilization as stablecoin minting collateral, the launch of Cosmos Hub2.O, and the ultimate rebirth on DeFi.

Buy rumors and sell news, or buy on a dip?

The transition to PoS appears to have been successful, despite the fact that the current price of Ethereum is far lower than what ETH bulls and Merge enthusiasts had thought it would be. And the anticipated rewards will probably make bullish actions more appealing as time goes on.

The creator of Jarvis Labs, Ben Lilly, indicated that investors in Ethereum may have something to look forward to in the coming days. He also mentioned that the mining industry is still the biggest factor that has the potential to cause crazed activity. He asked participants in the market to take a deep breath, avoid making too emotional decisions, and wait for possible results.

It's possible that in the future, ETH may go through a supply shock before perhaps going through a deflationary phase. Staking protects the platform while simultaneously guaranteeing a return on any tokens that are deposited. In a market that is declining, it may be more profitable to source a yield that is both predictable and risk-free. Lilly believes that it will take some time for the excitement around Merge to die down and for market participants to begin taking advantage of the potential benefits that Ethereum's PoS could provide.

What about bitcoins (BTC)?

In the most recent sessions, Bitcoin has not experienced any noteworthy events. The price of the most popular cryptocurrency has been stuck in a range from $17.6K to $24.4K for the past three months. In addition, the 200-day moving average as well as the resistance line that stretched from BTC's November (from the previous year) peak of $69K limited all rallies from every range peak since March 29.

Despite the fact that prolonged consolidation inside the current range may be bullish for alternative cryptocurrencies, macro tensions may continue to limit price movements in the equity and cryptocurrency markets. The scorching data on consumer prices released on September 12 could prompt the Federal Reserve to begin aggressively raising interest rates. And the potential knock-on effect on stocks may generate an even more acute spillover effect on the value of cryptocurrencies.

As a result, market participants continue to be risk-averse regarding the majority of digital coins. If the price continues to be rejected around the long-term downward trendline, combined with more $19K support retests, this might eventually lead to breakdowns below the yearly low.


Orizu Ebube

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Comments
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Humphrey Arinze Chukwu 19 w

The long-awaited release of Eth2 has come and gone without incident. In the meantime, it left market participants wondering what the forthcoming trending development would be inside the industry, and they were left wondering whether or not it would materialize.