The values of Bitcoin and Ethereum have remained static for the previous day after displaying some life on Monday. The good news is that BTC and ETH trading volume is still rather high, which may point to a potential bull run later in the week. Let’s examine recent news that is important to the markets.
Summary:
- While some Bitcoin miners declare bankruptcy, others are successful in raising further funds.
- Numerous cryptocurrency businesses get millions in venture capital funding despite the bear market, demonstrating the market’s long-term promise.
- S&P 500 Fall Impacts Bitcoin Price
- The merging of Ethereum has drawn criticism for its immediate results. However, over time, the merger will give Ethereum much-needed scalability and the capacity to handle a sizable user base.
- The cryptocurrency market is currently still bearish, but the large trade volume may give a bull run later in the week the momentum it needs.
Crypto Market News Update
While some Bitcoin miners, such as Compute North, declared bankruptcy last month due to the bear market, other miners were still able to raise money despite the low prices.
Aspen Creek Digital Corp. (ACDC), a solar-powered Bitcoin miner, raised $8M for its mining operation in Series A funding, according to a Coindesk story.
The report states, “The miner will use the proceeds for its second Texas mining facility, which will have 30 megawatts (MW) of mining capacity and be co-located with an 87MW solar farm.”
One benefit for the Aspen Creek mining company is that before attempting to raise capital from investors, they could secure the power for their mining operation. A mining operation might still be profitable despite the bad market, and Bitcoin miners can be prosperous.
Speaking of raising money, Decrypt reports that Strike, a Bitcoin payment startup, raised $80 million in its Series B fundraising, intending to use the money to expand its relationships with some of the most well-known retailers.
Strike uses Bitcoin’s lightning network, which offers cheaper and quicker transactions. Making Bitcoin payments available to some of the biggest retailers on the market is a proven approach to building a successful ecosystem and providing the cryptocurrency markets the much-needed bullish support. After all, it will be much simpler to onboard payments in other crypto assets like stablecoins, Ethereum, etc. if Strike can onboard cryptocurrency payments via Bitcoin.
The current correlation between stocks and cryptocurrencies is evident as the S&P 500 set a new low, pushing Bitcoin down in the process. After taking several optimistic steps today above $20k levels, Bitcoin abruptly fell back to $18k levels in response to the crash of S & P 500.
Ethereum’s Market News Update
Speaking of Ethereum, many are speculating as to whether the network merge was a mistake, given that ETH’s price has remained largely unchanged after the event.
Even as the integration went off without a hitch, a choice is now upon Ethereum. In addition to the fact that the SEC now views Ethereum as a security, the merger effectively drove miners away from the network and most likely increased sale pressure in the market.
It’s obvious that something dramatic has to be done to the Ethereum network for it to support a large number of users, even though the short-term implications of the merger may result in market uproar and upheaval.
Although gas prices are now manageable, Ethereum’s network must be able to handle a significant increase in transactions without significantly increasing gas prices when the next bull market occurs.
With a $16 billion 24-hour trading volume, Ethereum is currently trading at $1,300, up 5% over the previous 24 hours. The global crypto market valuation is currently $926 billion, below the $1 trillion level, indicating that the bears are still in charge.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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