Since the Ethereum network underwent a significant upgrade known as “the merge,” ether has decreased by about 15% while bitcoin has decreased by 3%. Before the network upgrade, the price of ether had nearly doubled from the year’s low point in June, outpacing bitcoin’s gains by a significant margin.
As the merger was largely priced in, investors have profited. Risk assets have been hit globally as a result of worries about further interest rate increases from the US Federal Reserve.
In anticipation of a crucial Federal Reserve interest rate decision on Wednesday, Bitcoin (BTC) is on the back foot and appears to be headed for support at $18,300, which, if broken, could worsen the bear market. At the time of publication, the most valuable cryptocurrency on the market was trading at $18,850, down 3.5% from the previous day.
In other news, here is a breakdown of what is trending in the crypto markets this week:
What The Biggest Fed Rate Hike Means
Following the lowest weekly close since July, Bitcoin (BTC) is facing yet another week of “huge” macro announcements. The Federal Reserve of the United States’ decision on key interest rates will be the main event of the week. When the new rate hikes are announced, how will the market respond? Is there a chance for a pump, or will we keep going downhill?
The Nasdaq Composite index and the S&P 500 had their worst weekly results since June. Bitcoin (BTC), which continues to have a strong correlation with the S&P 500, is expected to decline by more than 9% this week. A 26% drop in the S&P 500 could result from aggressive rate hikes, which would hurt the cryptocurrency markets more if this correlation persists.
Colorado State To Accept Bitcoin For Taxes
Colorado sets precedence as the first state to allow citizens to use bitcoin for tax payments in the US. At Denver Startup Week on Monday, Governor Jared Polis made the announcement about the new payment method.
Individual income tax, business income tax, sales and use tax, withholding tax, severance tax, and excise fuel tax are all tax types that citizens can pay with cryptocurrency, according to the report. Users who wish to use their bitcoin holdings to pay Colorado state taxes must, however, use a PayPal account.
“Am Not On The Run”- Terra Co-Founder Do Kwon
In a series of tweets disputing claims that he had escaped Singapore after an arrest warrant was issued on Wednesday, Do Kwon remained mum about his whereabouts. What will the outcome of the entire disaster be? The Terra ecosystem, which Kwon co-founded, experienced arguably the biggest cryptocurrency crash in May when TerraUSD Classic (USTC), the algorithmic stablecoin that replaced TerraUSD (UST), lost its link to the US dollar and fell to a low of $0.006 in June.
Similar events happened to its sister asset, now known as Luna Classic (LUNC), which experienced an all-time low of $0.0000009 in May after reaching an all-time high of more than $119 the previous month. Trading panic ensued after the twin collapses, and the wider collapse of the market for digital assets was caused by selling pressure.
Crypto Market Maker Wintermute Loses $160 Million
According to Evgeny Gaevoy, the founder and CEO of Wintermute, a cryptocurrency market maker based in the UK, it was the most recent victim of hacks into decentralized finance, losing about $160 million.
The CEO claims that an unidentified hacker successfully transferred 90 tokens from the company’s wallet to his or her own. The hacker apparently grabbed a variety of different assets, including Tether, USDcoin, Wrapped ETH, and Dai stablecoin, according to Etherscan. The criminal’s wallet is reportedly called “Wintermute Exploiter.”
MicroStrategy Reaches 130,000 Bitcoin Milestone
A total of 0.62% of all Bitcoin that will ever be mined is now owned by MicroStrategy. Michael Saylor, the executive chairman of the company, disclosed that it had acquired an additional 301 BTC for about $6 million, or an average cost of $19,851 per BTC.
In sum, the company owns 130,000 BTC, making it one of the world’s largest holders of this asset. Evidently a fan of round numbers, Saylor spent 301 BTC to reach the 130,000 mark.
The company’s investment has decreased significantly in terms of U.S. dollars due to the sharp decline in price action. The entry price for MicroStrategy is roughly $30,639 per BTC, and according to a filing with the Securities and Exchange Commission, the company has acquired 130,000 BTC for an overall cost of about $3.98 billion.
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