Bitcoin Price Avalanche makes Ethereum price even more broken
Navigasi - The crypto market was under pressure over the weekend as Bitcoin and Ethereum continued to print losses lowering the outlook for these assets' future prices.
|Bitcoin Price Avalanche makes Ethereum price even more broken|
As of Monday (13/6/2022), BTC was below $25,249, down 7% over the past week. Meanwhile, ETH hit its lowest level in almost two years at $1,345
Inflation that has worsened in the US since May suppressed the annual pace of 8.6% in the US, more than previously estimated at 8.3%.
"We need something to happen to stop the inflationary process that is spreading across the economy," El-Erian continued.
The price of Ethereum is still attracting the market despite a series of haunting problems. The merger refers to Ethereum's transition to a proof-of-stake protocol that is more energy efficient than the proof-of-work protocol, which Bitcoin also uses.
The Ethereum code is unique in that it increases the computational difficulty for mining.
It is designed to gradually expel miners from the blockchain. Once implemented and finalized, the Merger for the proof-of-stake system can proceed immediately thereafter.
Thanks to the proof-of-stake protocol, miners are no longer needed. Instead, people will stake their coins to check for new transactions and add them to the blockchain. It can potentially consume 99% less energy than proof-of-work.
The recent BTC sell-off became one of the strong factors that pushed Bitcoin towards a price below the $30,000 level.
Quoting Kitco News, Fairlead Strategies founder and managing partner Katie Stockton said the short-term outlook for bitcoin continues to deteriorate.
“Bitcoin has seen its daily stochastics turn lower following a muted reaction to signs of near-term downside exhaustion, which we see as a bearish near-term development. The weekly stochastics have failed to turn higher from oversold levels, which is also suggesting a relief rally. impossible, for now," Stockton said.
Poor performance in equity markets also weighed on Bitcoin. The level to watch is whether the $27,000 holds up. Otherwise, there is a downside risk towards $19,000.
Bitcoin's current risk continues to increase from the retest of long term Fibonacci support pointing to medium and long term momentum showing more downside. Last week, US Treasury Secretary Janet Yellen extended the discussion about Bitcoin after rumors that the asset was part of a retirement asset.
"This is not something I would recommend to most people who are saving for their retirement. To me, this is a very risky investment," Yellen said at an event hosted by the New York Times last week.