Massive voltality and bearish sentiment in the entire market ahead of the Merge


The past week has turned out to be full of extreme voltality in the cryptocurrency ecosystem. The market sentiment is seeing dramatic changes ahead of various vital happenings in the ecosystem.

Massive amount of whales and sharks investing in Bitcoin

Data from various tracker websites shows that there has been a dramatic increase in the number of Bitcoin addresses in possession of ten or more Bitcoin. This particular trend has been going on since the last seven months. However the total number of such addresses on the Bitcoin ecosystem has shown a direct increase of around 3.6%. This trend has resulted in the network accommodating the highest number of such addresses in the last 19 months.

The Merge

After Ethereum announced that it would be shifting to a Proof of stake consensus mechanism the entire market attention has been directed towards Ethereum and the attention from Bitcoin has declined. Even though Bitcoin has shown an increase in it’s overall value the market seems to be negatively inclined towards Bitcoin. These negative sentiments in the market towards Bitcoin has turned out to be a very vital catalyst for Ethereum which has started acquiring hordes of investors following the announcement of Merge.

CPI index

The release of the US Consumer price index on September 13 immediately affected the voltality of BTC/USD because the prices immediately dropped by around 8%. The rise in the rate of price index signals towards the fact that the US Federal reserve will issue a rate hike of around 0.75 BPS. The subsequent onslaught by the US Fed will cripple the already falling markets. Both of these events paired together have started putting a high strain on the already struggling risk asset markets.

The CPI index data release not only affected the crypto markets instead it also resulted in a decline in US equities market. The NASDAQ composite index fell by around 4% while the S&P 500 fell around 3%.

Various analysts have declared that until and unless the US Federal reserve stops hiking the interest rates there is no point in even expecting a risk assets price level renaissance. Another important metric that emerged from the CPI Index data was that the projected rate was supposed to be around 8.1%. However the data release overshooted all expectations and emerged around 8.3%. The increase of around 0.2% depicts that inflation is far from slowing around

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.