Dear Teroxx Community,
This week we saw a market in digital assets that attracted attention with positive prices and bullish fundamentals.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
The Ethereum Merge is getting closer and closer. Simply assuming that Ethereum will transition smoothly to a fully functional proof-of-stake (PoS) network after the Merge ignores the risk and effort required to move with an asset with a market capitalisation of $193 billion and 400 decentralised applications (DApps).
This is precisely why monitoring the basic network conditions is essential for this event, which is scheduled for 14 September, according to ethernodes.org.
In addition to the included total value of $34.2 billion in smart contracts, another $5.3 billion in Ether (ETH) is stacked on the Beacon Chain. The network is currently used by many tokens, oracle providers, stablecoins, layer 2 scalability solutions, synthetic assets, non-fungible tokens (NFT), DApps and cross-chain bridges.
Market participants are eagerly awaiting this event as it will be a milestone in the digital asset industry, although this does not necessarily mean price changes.
MicroStrategy is the largest institutional Bitcoin (BTC) holder and has now agreed with two agents, namely Cowen and Company and BTIG, to sell US$500 million worth of Class A common stock, according to a US Securities and Exchange Commission (SEC) document.
“We intend to use the net proceeds from the sale of Class A common shares offered under this prospectus for general corporate purposes, including the acquisition of Bitcoin, unless otherwise specified in the relevant prospectus supplement.”
The large-volume buying and selling zones in Bitcoin on the shorter time frames are now very important, data shows.
Bitcoin saw a short-squeeze on September 9, rising about 10 per cent shortly after falling to its lowest level since late June.
In an analysis, on-chain monitoring resource Whalemap noted that Bitcoin was able to form a bottom due to a lot of large buying.
For buyers, the zone around US$19,000 was previously very interesting. Therefore, it acted as a strong support, as it did in the months before.
The importance of the range in the middle area around 21,000 US dollars, in which BTC/USD moved, is an important one in terms of price. This zone is not only interesting for large investors, but also served as support in mid-August until it then became resistance. If this zone now becomes a support zone again, this could support the positive trend.
Technical term of the week
Hard fork: Describes a process when one blockchain becomes two. In this scenario, not all market participants agree on the transition to the “new” one and thus the chains are separated and a reorganisation takes place in the respective network. In the current case, this is particularly interesting for Ethereum, as miners will have to leave the network in the future and build alternative mining structures.
Digital Asset Markt
There were market moves last week that caused prices to rise in most digital assets.
The general news last week focused mainly on the upcoming merge of Ethereum and the possible bottoming of Bitcoin. Thus, prices rose mainly due to fundamentally important events and data.
Thus, the support zones could be left behind and a positive trend could be established in the market. In bitcoin, this ensured that the support region around $20,000 was strengthened and accumulation started again from these levels. Consequently, also driven by the bullish global financial markets, a trend was established that caused double-digit price jumps in some assets. Bitcoin was currently able to break away from these support levels by more than 10% and thus showed that in a positive market environment, price increases can / will be sustained and rapid.
Bullish outlook: Should the global financial markets experience a positive week, increased volatility in the market around the Ethereum Merge event could be the result, which would definitely be seen as positive.
Bearish outlook: If the global markets fail to confirm the trend and the Ethereum Merge becomes a non-event in the market, the support levels could be tested again.
