There are signs that the bearish state of the crypto market could soon be shifting gears.
Lower-than-expected inflation reports for July ignited a rise in crypto asset prices.
It also boosted hopes that the Federal Reserve might slow its pace of interest rate hikes, helping riskier assets like cryptocurrencies.
Since the June lows, the total crypto market cap has climbed to nearly $1.2 trillion, after having dropped to around $875 billion, according to CoinGecko.
Bitcoin (BTC) has bounced about 30% and is now testing overhead resistance near $24,000.
Meanwhile, Ethereum (ETH) has rallied 95%, testing the $2,000 level in further anticipation of The Merge — a major software upgrade for the blockchain, scheduled for Sept. 15-16.
The Merge is one of the most significant events to ever happen in the crypto ecosystem.
In fact, Crypto Analyst Alex Benfield says it’s “the driving force in the market at the moment,” with Ethereum acting as the market leader.
He describes The Merge as a seminal technical achievement:
This will be the first time a blockchain has transitioned from proof-of-work consensus to proof-of-stake, while the blockchain is still going.
It’s been compared to flying a plane and changing the engine mid-flight … the engine being the consensus mechanism.
These are two very different consensus mechanisms.
This transition has been on Ethereum’s road map for a very long time and people have been waiting for this.
You can’t really overstate how big of an event this is.
This transition is a huge test for Ethereum developers. If they do this successfully, it will make updates and improvements to the network easier down the road.
This is also a big deal for investors because it turns ETH tokens into yield-bearing assets.
This yield is largely risk-free, as it’s paid directly by the Ethereum blockchain to ETH stakeholders.
Alex is a contributor to Weiss Crypto Portfolio, working alongside Senior Crypto Analyst Juan Villaverde, who created the world’s first crypto timing model based on cycles.
Alex also researches and writes for Weiss Crypto Daily, providing the metrics for the crypto market and delving into the latest news and happenings influencing price action and sentiment.
In today’s five-minute video segment, Alex discusses the long-term prospects for Bitcoin and Ethereum and what makes these blue chip cryptos so promising.
He says the two largest cryptos offer something entirely unique:
There would have to be something extremely bad to happen to this space for either one of these blockchains not to succeed.
At some point, people are going to realize that the decentralized nature of cryptocurrencies is asymmetrical return.
And the power they hold by not being affected by governments or central banks is something that they’re never going to get somewhere else.
We’re in an age where governments are attempting to crack down on financial privacy and collect more financial data. We’ve seen governments cut off individuals and countries from the central banking system.
At some point, people are going to realize that the only escape route here is cryptocurrencies.
And the two safest cryptocurrencies to invest in are Bitcoin and Ethereum. They have differences that can make them attractive in their own lights.
In this insightful video, Alex and I also explore:
- An exchange-traded fund that the Weiss Crypto Portfolio is using for high returns during this bear market.
- How The Merge will transform the crypto landscape and investment opportunities in the space.
- Two different factors that could propel an influx of funds into the crypto market.
And much more.
The information in this short segment couldn’t be timelier. Just go to the video box above to watch it now.
Happy investing!
Jessica Borg
Financial News Anchor
Weiss Ratings
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