Ethereum Merge Causes Bitcoin Dominance Growth, Here's Why
Ethereum and Bitcoin
Modified Date:- Published Date:-Categories: Cryptocurrency
Ethereum MergeCauses Bitcoin Dominance Growth, Here's Why
Bitcoindominance shows anincrease of over 2% following the proof-of-stake consensus followingyesterday's successful transition to Ethereum. The index, which hit afour-year low late last week, started rising near the date of a significantevent for the main crypto market altcoin.
As becameclear later, more savvy investors were moving money from Ethereum to Bitcoinin advance, especially given the latter's strongest internal fall in two yearson an extremely negative CPI report. Now Bitcoin's growing dominance is helpingit to stay in the green, despite a more than 1% drop in the S&P 500 Index,with which BTC closely correlates.
Currentstate of crypto market
Unfortunately,despite the fact that the crypto market has temporarily diverged fromthe movement of traditional finance, the U.S. It is still necessary to followthe index of the stock market. So, the S&P 500 moved from the crucial$3,950 level to $3,900 and is currently trading at those levels.
If thebuyers fail to sustain the $3,900 level within the two days, we should expectfurther downside where the first target will be the $3,700-$3,640 block. ForBitcoin, which has so far held on to rising dominance, it means that adownside break below the $19,500-$19,000 level is possible.
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