Investors Withdraw ETH Holdings Despite Successful Ethereum Merge
21 Septiembre 2022 - 2:02AM
NEWSBTC
Before the Ethereum merge event, some experts and investors
predicted a fall in the price of Ethereum and hence traded
cautiously. Popular analysts referred to the merge hype as a buy
the rumor, sell the news scenario. The Feds reserves tightening and
other market factors added to the volatility recorded in the
valuations of ETH, BTC, and other Altcoins. After the merge event,
analysts’ predictions proved right as the ETH price crashed below
the support level. As a result, several ETH investments got
withdrawn, and a few additions were recorded after the merge.
Related Reading: ETH Backpedals After Hitting $1,800 Ahead Of Merge
Last Week According to reports, ETH investments were reduced by
$15.4 million, while BTC investments increased by $17.4 million.
The data could imply that investors pulled out from Ethereum to
Bitcoin. Contrary to the hype that followed the Ethereum merge, the
ETH price has plummeted seriously. Earlier in September, the merge
supporters believed that Ethereum would receive more investments
after the merge. However, the reverse seems to be the case with the
number of outflows recorded last week despite a smooth transition.
Ethereum Price Drop Taking track of ETH price from the time before
the merge till today, ETH price crashed from $1,800 to $1,300. This
kind of record can only imply that several investors who previously
held onto their ETH holdings have sold the same. Such a price drop
is critical for Ethereum as experts have forecasted a further fall
to $1,000 if ETH breaks below $1,250. In the early hours of
September 15, ETH/BTC exchange price was at 0.0817BTC on Binance.
ETH value dropped hours later to 0.0746 BTC and continued to
decline. ETH price didn’t only fall against BTC; ETH/USD exchange
value dropped too. Although ETH holders were not pleased with the
price drop, the majority are looking forward to recovery with time.
Among the optimistic investors is Matthew Sigel, head of digital
assets research at VanEck. Sigel compared the post-merge ETH/USD
performance to what BTC experienced after significant changes. He
believes ETH would stabilize but is unsure about the time.
Proof-Of-Stake Cryptocurrencies May Be Considered Securities, Says
SEC Last week, the Chairman of the Securities and Exchange
Commission, Gary Gensler, commented on staked cryptocurrencies. The
regulator said in a Wall Street Journal edition that staked
cryptocurrencies might be subject to regulations. He further
explained that Staked crypto might be seen as securities. Following
Gensler’s comment, there may be regulatory uncertainties
surrounding the new Ethereum proof-of-stake Token. As a result,
corporate investors may not want to dive into ETH investment
because of regulatory uncertainty. According to the Journal,
Ethereum’s proof-of-stake caught SEC’s attention. He further noted
that proof-of-stake coins have contract attributes and will require
SEC regulations. Gensler’s comments came out hours after the
completion of the Ethereum merge. Related Reading: Ethereum Proof
Of Work (ETHW) Gains 30%, Is More Upside Coming? Although Gary
didn’t categorically point at Ethereum, his comment might have
contributed to the fall in Ether price last week. Featured image
from Pixabay, Chart: TradingView.com
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