Mooners and Shakers: Bitcoin plunges below $19k; Ethereum implements Bellatrix upgrade
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Yesterday the Cryptoverse was complaining about Bitcoin’s boring price action. BTC listened but didn’t seem impressed with the impatience, falling off the couch and somehow losing US$1,000. Ethereum, meanwhile, has had an up-and-down 24 hours.
That said, ETH is comparatively steady across a seven-day time period. The number two crypto (which probably isn’t the greatest of descriptions for Ethereum fans) spiked, at least for a few hours, overnight on its “Bellatrix” upgrade.
Okay, cool. Bellatrix… What the Fork? Don’t worry, we won’t attempt to get technical – we’ll topline it. Bellatrix is simply the next little “hard fork” stage that prepares the Ethereum network for “Merge” to Proof-of-Stake. We know this, because Vitalik said so…
The merge is still expected to happen around Sep 13-15. What's happening today is the Bellatrix hard fork, which *prepares* the chain for the merge. Still important though – make sure to update your clients!
— vitalik.eth (@VitalikButerin) September 6, 2022
If you’re tuning in late to all this Merge stuff and have little idea what it is, we’ll quickly summarise this as well. It’s Ethereum’s near-mythical-status upgrade – the biggest upgrade the leading smart-contract blockchain has undertaken, and probably will ever undertake.
It’s a lonnng-awaited change to the core structure of Ethereum, moving it from an energy-chewing Proof-of-Work, mining-based protocol (a la Bitcoin) to what’s considered by many to be a far-more-efficient Proof-of-Stake system. PoW and PoS are simply different ways to operate a blockchain and manage and track every transaction on a given network.
If you’re here you probably already know this. If you’ve wandered in here aimlessly, hope that fuels some further curiosity.
Onto some daily price action…
With the overall crypto market cap at US$992 billion and down about 3.5% since yesterday, here’s the current state of play among top 10 tokens – according to CoinGecko.
Oops, it did it again… the entire crypto market has lost about US$11.5 billion since yesterday, sliding off the one-trill rainbow a bit like this…
My lil sis got on the giant slide at belle isle 😭😭😭😭😭😭😭😭😭😭😭 pic.twitter.com/XeczOBwybu
— Autumn & Myah (@myleafz) August 22, 2022
And for more on that particular butt- (and phone) busting incident, check out Gregor’s ASX Small Caps Lunch Wrap from the other day. In fact, dial into his lunch wrap every day as it’s always stupendously amusing and informative.
But as you can tell from the CoinGecko top 10 chart, it definitely looks like a few major players are landing on their arses pretty hard today. Cardano (ADA) is leading the big daily dippers with an 8.8% come down, although, like Ethereum, it’s steady across a weekly timeframe due to its own upgrade narrative, known as Vasil.
As for Bitcoin, as prominent crypto data-analyst Benjamin Cowen points out, it just closed out the day in the US at one of its lowest ebbs this year…
— Benjamin Cowen (@intocryptoverse) September 7, 2022
It’s another little BTC correction that hasn’t caught Cowen by surprise, or various other chart watchers for that matter, including Crypto Ed…
BTC printing double bottom, might bounce a bit but I expect it to take out the lows and go for low 18k's I've been talking about past 2 weeks.
Chart 2: if ETH really goes for green box (which seems unlikely given its strength past days) BTC will go even lower than 18k pic.twitter.com/R3SteySy3C
— Ed_NL (@Crypto_Ed_NL) September 6, 2022
Sweeping a market-cap range of about US$7.8 billion to about US$405 million in the rest of the top 100, let’s find some of the biggest 24-hour gainers and losers at press time. (Stats accurate at time of publishing, based on CoinGecko.com data.)
… Annnnd, it’s gone. Sorry, with top stablecoins like USDT and USDC offering the best percentage gains in altcoin land today (e.g. 0.1%), you know the cupboard’s pretty bare on pump-action cryptos at the moment.
• DeFiChain (DFI), (market cap: US$608 million) -24%
• Lido DAO (LDO), (mc: US$1.1 billion) -15%
• Ethereum Classic (ETC), (mc: US$4.76 million) -14%
• Celsius (CEL), (mc: US$568 million) -13%
• Kusama (KSM), (mc: US$410 million) -12%
Ouch… there’s some serious double-digit dumping going on over the past several hours. Yesterday we mentioned Ethereum Classic’s miner-induced exuberance, but look at it today.
DeFiChain, a protocol working on bringing decentralised finance capabilities to the Bitcoin network, was also riding a wave of positivity yesterday, too.
A reminder, then, that when Bitcoin dumps, altcoins have a habit of falling twice as hard.
A selection of randomness and pertinence that stuck with us on our morning moves through the Crypto Twitterverse…
Airdrops are the easiest way to gain wealth in crypto
Problem is, most don’t know how to predict which protocols will have airdrops (or when)
If you see a marketmaking firm leading a later-stage VC round, there’s a strong chance that protocol is tokenizing
— Psycho (@AltcoinPsycho) September 6, 2022
#BTC tends to bottom 517 to 547 days before its Halving
Next Halving is to occur in April 2024
Which means that $BTC could bottom this November or December 2022
— Rekt Capital (@rektcapital) September 5, 2022
Not buying #BTC now will cost you more in the long-term than it could cost you in the short-term
Sure, one could argue that in the short-run BTC could still go down -5% or -10%
— Rekt Capital (@rektcapital) September 6, 2022
— naiive (@naiivememe) September 6, 2022