After A Massive Drop, The Crypto Market Has Recovered A Trillion-Dollar Valuation in 2022
The crypto sector has regained its trillion-dollar status after losing it a few weeks ago owing to a drop in cryptocurrency prices and other hurdles. Despite several hurdles such as an increase in the US inflation rate to 9.10 percent, macroeconomic uncertainty, investors withdrawing their crypto assets, negative government regulations, and so on, the market has returned to the trillion-dollar territory for the first time in weeks.
The most recent development is being driven by altcoins, particularly Ether, the second largest currency after Bitcoin. The surge in investor hopes for Ethereum’s long-awaited merger has contributed to the altcoin market boom. Ethereum’s “The Merge” mainnet update is set to be live on September 19th, 2022.
The Ethereum blockchain will transition from a Proof-of-Work (Pow) consensus process to a Proof-of-Stake (PoS) mechanism as a result of this update. The cryptocurrency market has risen in anticipation of this update.
The Crypto Market Has Recovered A Trillion-Dollar Valuation
Regardless of analysts’ forecasts that the Federal Reserve would raise interest rates by at least 75 basis points at the Federal Open Market Committee meeting on July 27, the market has had a bullish week, which also implies that traditional markets are marginally higher.
The major US indices, including the tech-dominated NASDAQ, the DOW, and the S&P 500, are up more than 2% for the week.
Bitcoin was trading at $24,000.30 at the time of writing this article. This suggests that the world’s largest currency has recovered somewhat. Previously, the currency, which had fallen below the $20,000 threshold in recent weeks, was trading near that level. At the time of writing, ether was worth $1,606.30.
The current market fall, as well as other macroeconomic concerns, have created some difficulties for crypto enterprises. While some of these businesses were forced to halt activities such as withdrawals, deposits, and swaps, others, such as Celsius, declared bankruptcy.
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