After falling below $19,000 last Wednesday (the lowest level since June), the price of Bitcoin rose by about 17% by Monday and exceeded $22,000. According to CoinDesk, around 23:00 Kyiv time, the price of the cryptocurrency reached $22,390.
Such a rapid rise in the price of Bitcoin is explained by expectations of the release of inflation data in the United States, as well as the upcoming long-awaited merger of the Ethereum network. Also last week, an increase in the value of shares of American companies was recorded. Bitcoin is closely linked to the stock markets, especially the Nasdaq, and often moves higher when the index rises.
Crypto investors are looking forward to the August CPI report (due Tuesday) to gauge the rate of inflation. This may give hints about future actions of the US Federal Reserve.
Also, investors have high expectations regarding the Ethereum merger. The transition of the blockchain from the Proof-of-Work model to Proof-of-Stake will significantly reduce the overall power consumption of the network. In turn, this may lead to a wider use of the corresponding token. Although analysts have warned that the merger will not necessarily speed up the Ethereum network and will not reduce the fees associated with conducting transactions. However, in anticipation of the merger, the value of Ethereum rose by 90% after hitting a low as of June 19th. Over the same period of time, the price of Bitcoin increased by about 20%.
Well
Java evening
Ethereum developers have held a dress rehearsal before the long-awaited transition from Proof of Work to Proof of Stake – the update is expected in mid-September
Source: cnbc
