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BTC and ETH Prices Struggle as Fed Interest Rate Hikes Obliterate Global Markets » The Merkle News

BTC and ETH Prices Struggle as Fed Interest Rate Hikes Obliterate Global Markets » The Merkle News

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After a brief rally and recovery on Thursday, Bitcoin and Ethereum prices are still struggling with support. This week’s Fed’s 0.75% interest rate announcements created a significant bearish trend for global and crypto markets. Not surprisingly, the crypto market didn’t improve much this Friday as stocks opened in the red, with the Dow Jones down 1.45%, the S&P 500 down 1.68%, and the NASDAQ down 1.13% in the hours after the open. Let’s take a look at the relevant Bitcoin, Ethereum and global market news that will affect prices this Friday.

Key Points:

  • Bitcoin and Ethereum continue to struggle with support after a brief rally on Thursday.
  • Bitcoin miners have been the hardest hit by the recent bear market, with the latest victim, Compute North, filing for Chapter 11 bankruptcy after nearly $500 million in debt.
  • Ethereum struggles post-merger as miners leave blockchain and sell off their ETH; prices will likely take several months to recover.
  • While crypto projects continue to build and innovate, it’s unlikely we’ll see a significant uptick this year with global politics, the pandemic, and the state of the world economy.

Bitcoin news

Bitcoin continues to struggle to maintain the $20,000 support, which has been a critical level for the cryptocurrency over the past several months. The declining pace and global economy continue to create significant uncertainty in the market as investors are wary of investing and opening long positions in risky assets such as crypto.

Major Bitcoin mining operations are among the hardest hit companies in the crypto bear market, with the latest company, Compute North, to file for bankruptcy owing up to $500 million.

According to a Yahoo Finance report:

“Compute North, one of the largest operators of crypto-mining data centers, filed for bankruptcy and revealed that its CEO has resigned as the cryptocurrency price gap weighs on the industry.”

After raising nearly $385 million in February, the company has been unable to regain profitability due to mining difficulties and a price drop of more than 50% in recent months.

In other more positive news, Michael Saylor continues to make very bullish predictions for BTC, claiming that Bitcoin could reach $68,000 in four years and over $500,000 in the next decade.

It is clear that for some reason Bitcoin has a high correlation with global markets and that it continues to be affected by stock market price movements. If the global economy returns to a healthy level, we are likely to see significant upside in cryptocurrencies such as Bitcoin and Ethereum.

Ethereum news

Speaking of Ethereum, it seems that while the merger was successful and will allow the network to support a much larger user base in the coming months, the fact that many miners left the network and are selling their ETH is creating a significant bearish sentiment for the asset.

Although some predicted that Ethereum would rise after the merger, in reality Ethereum only suffered significant losses. While Ethereum was trading at $1,700 at the time of the Consolidation, it is now struggling to hold support at $1,300.

It may take several months for Ethereum miners to give up their losses and switch to another POW coin such as Ethereum Classic. Until then, expect Ethereum to trade in the low $1,000s. Furthermore, until the price of Bitcoin and the stock market show significant improvement, it is unlikely that ETHUSD will rise above $2,000.

Patience is the name of the game in the cryptocurrency market, as it is a common trend to deal with long, drawn-out bear markets followed by short bullish periods that reward long-term holders with 5x -10x gains in a few months.

Overall, the crypto community continues to build and innovate, and the bearish market sentiment will change sooner rather than later. While 2022 may be “cursed” and we are unlikely to see any significant upturn this year, next year will be a fresh start and we may finally start to see a recovery if global events improve in terms of political conflict. About the Covid-19 pandemic and the state of the economy.

Disclosure: This is not trading or investment advice. Always do your research before buying cryptocurrency or investing in projects.

Follow us on Twitter @themerklehash to stay up to date with the latest Crypto, NFT, AI, Cybersecurity and Metaverse news!

Image source: romanvx/123RF // Image effects author Colorcinch



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