On Monday, the biggest token increased by as much as 3.3%, briefly reaching $22,000 before reversing course and trading unchanged as of 1:16 p.m. at Tokyo. Smaller coins like Cardano and Solana, as well as Ether, were struggling.
A higher-than-anticipated rise in US inflation on Tuesday may increase the likelihood of restrictive monetary policies, which are bad news for the value of cryptocurrencies. Any hiccups in Ethereum’s upgrade, which is scheduled for later this week and is the most significant crypto network commercially, could also cause unrest.
On September 9, Bitcoin increased by about 10% as more undervalued assets gained support thanks to a weaker dollar, which suggested that there was a little less fear in what has been a challenging year for global markets.
According to Tony Sycamore, senior market analyst for City Index Ltd. in Sydney, a period of silence from Federal Reserve officials before the US central bank’s interest-rate decision later this month may be one of the factors assisting Bitcoin.
Bitcoin, Ether, and the larger MVIS CryptoCompare Digital Assets 100 Index have suffered losses of more than 50% in 2022 due to rising borrowing costs as well as collapses at cryptocurrency lenders and hedge funds.
Prior to the latter’s transition to a more energy-efficient blockchain, known as the Merge, the Ethereum network’s native token, Ether, is in particular focus. The numerous financial applications that depend on the network are under constant watch by the crypto community for any hiccups.
According to a note from Genesis Global Trading Inc., the pattern of bets surrounding Ether options is skewed toward bullish calls, but the picture is more balanced around the Merge date, suggesting hedging in the run-up to the event.
