I mean, like seriously now. Again! Another one? It seems like Bitcoin thinks it’s the ocean with waves constantly crashing against the shoreline. Enough now! Please, buddy. Stop it. Get over your identity crisis, ‘par favor’, and get back to growing as the Cryptocurrency I know you can be!
Well, no matter how we want to wish, pray, shout, scream, encourage, or threaten Bitcoin … it won’t respond.
We gotta do what they teach in psychology YouTube videos. Prepare. Prepare. Prepare. Know who you are dealing with.
Meaning, let’s get real here, me fine and mighty folk. We are dealing with a currency that is ABOUT to go rogue!
Deal with your emotions. Make a plan, work the plan and plan the plan. It sure does not look good right now, but even then there’s always hope! Please think long and hard about what you need to do to protect yourself … before it’s too late!
Why Bitcoin Prices Are Dropping Again
Bitcoin fell from $20,000 to below $19,000, while Ethereum dropped back to around $1,500 having climbed to nearly $1,670. And then the crypto market crashed again on Tuesday evening with several coins down as much as 8 % in the last 24 hours. Bitcoin fell from $20,000 to below $19,000, while Ethereum dropped back to around $1,500 having climbed to nearly $1,670.
Prices are down across the board. XRP has fallen 4 % to $0.32, Cardano is down by 7.5 % to $0.46, and the likes of Binance Coin, Solana, and Dogecoin have suffered similar losses. It comes amid the Ethereum network merge that has been labeled one of the most important moments in crypto history.
Here’s what we know about crypto’s latest crash, why the Ethereum merge is so important, and what experts think could happen next.
How The Crypto Crash Is Caused By Federal Reserve Inflation Fears
Cryptocurrency is strongly influenced by the traditional stock market, which also fell on Tuesday. The S&P 500 fell by 0.4 % and the NASDAQ 100 fell by 0.7 %. The stock market slump came in response to fears the Federal Reserve could continue trying to dampen inflation, with the dollar reaching a 20-year high.
The crypto price drop came after a 10-day stretch during which Bitcoin traded around the $20,000 mark. Joe DiPasquale, CEO of crypto hedge fund manager BitBull Capital, told CoinDesk: “Each failed attempt (to breach the resistance zone just above $20,000) increased the likelihood of a test of the bottom of the price range.”
How Will The Ethereum Merge Work?
The Ethereum merge will divide the Ethereum network into smaller data blocks, in order to make it more efficient and significantly greener. It will merge the Ethereum Mainnet with the Beacon Chain.
It will change the network from proof-of-work to proof-of-stake. This means that instead of using traditional mining – which requires powerful computers to solve math puzzles to run the network and create new coins – it will now use a system in which ETH owners can stake it to power the network.
According to Ethereum Foundation, Ethereum’s energy consumption will be reduced by 99.95 % after the merge.
Experts Issue Strong Warning Of Bitcoin Crash September 2022
Experts are painting a concerning picture for Bitcoin investors. Naeem Aslam, an analyst at broker AvaTrade, told Barron’s: “Bitcoin’s daily range has narrowed massively, and this is giving us an indication that a massive capitulation is coming. “We believe that this capitulation can be any day now as Bitcoin has been trading in a narrow range for a long period of time.”
Crypto researcher Kyle McDonald told Coindesk that the Ethereum merge could have a negative effect on Bitcoin. I think after the merge, investors and regulators are going to realize that proof-of-work was never really necessary and we’re slowly going to see a huge crash in the Bitcoin price,” he said.
“Bitcoin will never hit $69,000 again; now’s a great time to sell all your Bitcoin.”
Ethereum Set To Overtake Bitcoin This September!
Ethereum could become the new market leader if the merge is a success, but investors are waiting with bated breath to see how it pans out.
Dr. Anna Becker, CEO of algorithmic crypto investing platform EndoTech, told the Evening Standard: “If it happens and everything goes smoothly, we move into a new era and it’s extremely exciting for the whole industry. But as with many other projects, it can happen that we will hit some stumbling blocks and it will not go as smoothly as we hope.
“Ethereum is the infrastructure for many companies to manage their blockchains, so if something goes wrong we have the halt of the industry… it will be quite troublesome for the industry to survive this period.”
She added: “Ethereum is the new hope of the market, so we expect that it becomes a leading index and a leading coin with the market. Cryptocurrency can become the currency that is used for everyday use and then it will become extremely widespread.”
Why Cryptocurrency Is A Huge Risk In 2022
People invest at their own risk and cryptocurrencies are not regulated by British financial authorities. All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to potentially lose everything you invest.
The Financial Conduct Authority warned in January: “Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money. “If consumers invest in these types of products, they should be prepared to lose all their money.”
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, previously explained the risks. She said: “On top of being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty but also means that investors have little or no protection against fraud.”
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
