Ethereum Merge leaves traders uncertain in its wake, crypto markets take a dive amidst potential rate hikes.
The Ethereum blockchain went through The Merge on September 15, successfully completing its transition to a proof-of-stake consensus algorithm from its previous proof-of-work one. The event understandably had a pretty significant effect on the broader crypto markets.
Bitcoin, the biggest crypto in the market at the moment, fell around 5% to a three-month low of $18,390 yesterday. ETH, the second largest crypto, also dropped about 3% to a two-month low of $1,287 on the same day. Most other crypto tokens went yet farther down.
The Federal Reserve system is expected to hike benchmark rates at a faster pace than before, and the predictions are already negatively affecting crypto prices. Meanwhile, there’s also some speculation that as the U.S. Securities and Exchange Commission Chairman Gary Gensler said in the past week, the new structure of Ethereum might just call for extra regulation.