Home Business Cryptos Volatility Seems to Lead to Purge of “Merger Favorites”

Cryptos Volatility Seems to Lead to Purge of “Merger Favorites”

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Cryptos Volatility Seems to Lead to Purge of “Merger Favorites”


Ether outperforms Bitcoin for a third day in a row as intermittent bouts of optimism about Ethereum’s ongoing upgrade are expected will finally take root.

The native currency of the most commercially important gained up 2% to $1,716 as of 10:51 a.m. New York. Bitcoin was little changed at around $21,693. Other tokens such as Solana and Cardano were trading on either side of unchanged.

Speculators have been picking up Ether call options with traders betting the token’s price could hit around $2,200 in September over the past few weeks, while showing more interest in put options for protection against the drops after the upgrade. Known as Fusion, Ethereum The network is set to transition from proof-of-work consensus mechanism to proof-of-stake next month after a series of delays.

“We believe the crypto-specific sell-offs are largely over, and so the price action will likely continue to cut hard with the macro for now.” Cumberland, the crypto offshoot of Chicago-based trading giant DRW, said in a Twitter thread on Thursday. “The upside of this volatility is that it probably rattled the ‘merger favourites’.”

That said, we believe the crypto-specific sell-offs are largely over, and so the price action will likely continue to cut hard with the macro for now. The benefit of this volatility is that it likely rattled the “merger favorites”.

— Cumberland (@CumberlandSays) August 25, 2022

Investors expect the software upgrade could boost the price of the token as the new mechanism replaces a process in which crypto miners use power-hungry computers to secure the network and earn tens of millions of dollars in tokens. in reward. This reduces its carbon footprint by 99%. The new mechanism also helps slow down the rate of issuance of new tokens by eliminating miners.


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Less speculation in the market prepares the Ether rally

“The merger (if completed successfully) is now a real catalyst: the impact of removing approximately $20 million a day of miner sales is impossible to ignore.” the trading company said. “It will take significant macro headwinds to offset the impact of the sudden disappearance of this flow,” Cumberland officials wrote.

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