Bitcoin And Ethereum Plunged, Bringing the Whole Market In Reds

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The Merge has not pushed up crypto prices as expected. Instead, the third week of September started with more red than green. The whole market has collapsed and even the total market cap has fallen.

Currently, many crypto assets lose every hour. Many crypto exchanges forcibly liquidate leveraged positions. According to mint glass, the total liquidated amount has already reached $431.51 million, with 130,087 traders affected.

Related reading: These Two On-Chain Signals Precede Bitcoin Drops, Analyst Suggests

Bitcoin price plummeted

Currently, the Bitcoin price stands at $19,326, indicating a loss of 2.38% in 24 hours. While the one-hour price increase shows progress at 1.07%, BTC has lost 13.58% in one week.

Bitcoin traded above $20K from September 10 to 14 before the Ethereum merger. A few minutes after the upgrade, it lost its grip on the price and dropped to $19,701. It maintained that level until September 17, when it re-opened the market above $20k. ditch

But this third week of September, BTC pushed towards $19k as the general market opened in the red.

BTCUSD
The price of Bitcoin is currently trading at over $19,000. | Source: BTCUSD price chart of TradingView.com

Ethereum Crashed After the Merger

Today September 19th, the Ethereum Prize state at $1,359.13 after a loss of 4.26% in 24 hours. But this is not the whole story. The price of ETH crashed after the merger on September 15. Before the upgrade, Ether traded above $1700K from Sept. 10 to Sept. 13, before falling to $1574 a day before the merger.

At the close of market on September 15, the Merge day, the price of Ether fell to $1432 and remained at this price until September 18. The next day, the general crypto market opened up in the red, pushing the ETH price below $1400K.

Ethereum price data shows it has lost 21.52% all week. Fortunately, the one-hour gain is green, indicating a glimmer of hope.

The whole market is in the red, why?

Market experts have commented that macroeconomic factors have caused the downward trend. The first factor is the latest CPI data released in September. The figure indicates that inflation is still raging and will necessitate another rate hike by the Federal Reserve. Many market observers are already saying that the Feds will aim for a 100 point, which has not been reached in 40 years.

Fears of continued inflation and the Fed’s aggressive attempt to combat it have sparked market panic. The ongoing liquidations on exchanges will not help things at all. Instead, it could cause more problems in the market.

Related reading: Investment Opportunity with New Cryptocurrency Miners

While some talk about the August CPI and the impending rate hike, many point out that the Ethereum merger has done more harm than good. Some analysts have stated that the upgrade was overhyped, and recent events have proven it to be a “buy the rumor, sell the news.”

No one knows how the market will develop in the coming days. But many people expect more bearish moves after the Feds meeting on September 21.

Featured image from Pixaby and chart from TradingView.com

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