But despite the good initial phase Bitcoin fell 0.2% to $ 23,789.99, but ended its first month in the green after three consecutive months of declines. The cryptocurrency leader is up nearly 20% in July compared to drops of 37% in June, 15% in May and 17% in April.
Instead, ether the second largest cryptocurrency rose 0.4% to $ 1,697.28 in late July with gains. So far this month it has increased by 51% compared to losses in June (-44%), May (-28%) and April (-16%).
The next interest rate decision by the US Federal Reserve will come in September, giving the cryptocurrency market two months to set a course.
For analysts, the Fed’s rate hike suggested that “the strength or weakness of the dollar is what matters most to bitcoin prices,” said Naeem Aslam, chief of analysis at Avatrade. “We have seen it The dollar index broke its highs and now we are also seeing bitcoin prices rise. It will be interesting to see if the relationship holds up as Bitcoin’s price is still not too far from its critical support of $ 20,000, “he noted.
From now on, BTC and Ethereum prices rise, “But the main resistance that will remove the threat of further decline is if BTC breaks through the $ 30,000 price level and ETH moves to $ 2,000,” Aslam says.
“The focus will now be on any economic data that could conflict with the Fed’s objectives. The central bank must be prepared not only to severely damage the growth prospects of states, but also to accept the reality of an impending recession and a severely restricted labor market, ”comments GlobalBlock.
Ethereum, without cap
Following the announcement of the merger date of Ethereum (“The Merge”), the second largest cryptocurrency with the highest market capitalization is enjoying a strong rally. However Prices could continue to rise for cryptocurrency co-founder Vitalik Buterin. “Until ‘The Merge’ (‘La Fusin’), the event is not ignored by the market”, not only in terms of the market, but also psychologically and narratively. The long-awaited merger will most likely take place on September 19, and a Proof of Stake (PoS) transition with the merger of the Ethereum mainnet and Beacon chain will not happen immediately, according to CoinGape sources.
Buterin points out that the move to PoS will not be complete with the merger of the Ethereum mainnet and the Beacon chain. Ideally, the “Surge, Verge, Purge and Splurge” phases are decisive for the “Merge”.
According to “CoinGape” in an articleI: “Anyone expecting a price increase due to the imminent merger in mid-September has to wait 6-8 months, as is customary in the market, before the price increase actually occurs.”
Ethereum (ETH) will become a deflationary cryptocurrency after the fork as the offer will be reduced following the EIP-1559 proposal to burn ETH instead of giving it to miners.