Bitcoin and other major cryptocurrencies lost ground after knowing the August Consumer Price Index (CPI) in the US, The fact turned out to be higher than expected. This caused stock markets to drop and signaled a sharp rise in interest rates. Zala commented that the top 10 cryptocurrencies by market capitalization crashed.
According to Zala, this inflationary figure for the Consumer Price Index (CPI) in the US rose by 0.1% in the month and 8.3% in the year. Therefore, he explained, these high inflation numbers undermine investor optimism and encourage the Federal Reserve to implement tougher rate hikes.. “Everything indicates that after the FOMC meeting next week, the rate hike will be 75 basis points.‘, highlighted.
“Sentiment is bearish across the markets, global economies have begun to slow and leading economic indicators are showing signs of worsening. Sentiment in the cryptocurrency market remains at levels of intense fear, with the Fear and Greed Index below 30 points.”he added.
The Ethereum integration is now complete
On Thursday morning, Ethereum completed its long-awaited merger. Thanks to this technical development, Ethereum changed its consensus model from Proof of Work to Proof of Stake. According to Zala, ETH price is hovering above trend line support and just below the $1600 resistance area. He noted that bullish ETH investors have been very active in recent weeks, placing strong bids above the dynamic trendline support. He stated that “the next resistance level is at $1.785”.
While ETH’s current price action is less bullish than the consolidation and ETH bulls expected, the actual switch to PoS appears to have been successful and perhaps, over time, the benefits of PoS will translate into bullish ETH price action..
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