Recurring market commentary on what’s happening in the crypto markets, summarized by the Crypto Broker team at Crypto Finance AG.
Market commentary
Good morning!
Bitcoin (BTC) is currently trading just above 20k, which means that it is back to where it started at the beginning of the week. It did, however, move in a tight channel between 19.5k and 20.5k before then. Ethereum (ETH) is now up 6% since the beginning of the week. And the Ethereum Merge is now less than two weeks away from the anticipated mid September date.
Ethereum Merge at the center of attention
More and more protocols have come out with statements whether they will support a potential proof-of-work chain. Opensea is the latest to announce that they will solely support NFTs on the PoS chain. This will be a major roadblock for creating a sustainable NFT marketplace on a potential PoW fork.
ETH miners, who will not be able to mine ETH if the merge is successful, are still holding onto their ETH, most likely in anticipation of a price spike after a successful merge and a potential ETHPoW coin. According to OKLink, an on-chain data analysis platform, ETH held by miners has been sharply increasing to a four-year high.
Mt. Gox rumors start circulating again
And now turning our attention to bitcoin. On Wednesday, the Mt. Gox trustee released more information regarding the rehabilitation plan for creditors who lost BTC in the 2011 exchange hack. Creditors have until September 15th to submit a claim. The hack resulted in a loss of 850,000 BTC. However, only a reported 150,000 BTC were ever recovered and are set to be distributed.
Earlier this week, rumours that 137,000 BTC had already been released spooked Crypto Twitter and investors. Creditors were quick to shut down these false rumours. Mt. Gox has only just started the repayment process, which will likely be done through various installments and could take months. Even if the entire tranche were to be distributed and sold in one day, it would only account for around 10% of the daily BTC volume.
Happy Trading!
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