As the Merge got underway, BTC, ETH, and the majority of altcoins saw steep declines, but ATOM is defying the trend with a gain of almost ten percent.
Finally, the Ethereum Merge took place. It’s over, and thankfully there were no significant hiccups. According to many’s predictions, the event was of the “buy the rumor, sell the news” variety.
However, it’s also possible that the market’s recent upward movement was actually sparked by the consumer price index reading that came in hotter than expected on Monday.
Whatever the causes of this week’s decline, the Merge is over, and the bulls are left holding a lot of nothing in its wake.
Analysts will probably need to develop a fresh bullish thesis, or they will need to pay close attention to the assets that the smart money chooses to rotate into.
The trove of hard-forked ETHPOW tokens was supposed to magically materialize multi-billions of dollars in liquidity, which would likely inflow to Bitcoin (BTC), helping the struggling asset to break out of its current range.
Recall that “The Merge,” according to so many “smart” people, was meant to be a bullish event that would possibly send Ether’s (ETH) price higher.
None of that actually occurred. Not to say it won’t happen, but the market as it stands now is a vibrant shade of red. A majority of altcoins experienced double-digit losses after Bitcoin fell below $20,000 on September 15.
At the moment, there isn’t an obvious narrative that investors can interpret as bullish.
Not Everything Is Dumping
There is an outlier, and it goes by the name of Cosmos (ATOM). It’s one of the few green assets on the charts on Merge day, much to the surprise of some. The altcoin is currently up 9.4% and has made a strong recovery from its low point of $13.19 on September 14.
The earlier analysis described how the ATOM price trades in an ascending channel, riding above the 20-day moving average and making the case that dips to and below the moving average represent profitable buying opportunities.
Not Everyone Is Dumping
Despite the current market slump, money keeps pouring into the cryptocurrency sector. A London-based venture capital giant, Northzone has raised €1 billion (roughly $1 billion) to create a fund that will concentrate on crypto and fintech startups, marking one of the biggest moves into the cryptocurrency space recently.
One of the most renowned U.S. stockbrokers, Fidelity Investments, is reportedly considering allowing Bitcoin trading for individual investors. Although it hasn’t been formally announced to clients yet, Fidelity intends to offer the service to the more than 34.3 million brokerage accounts it currently manages.
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