Bitcoin Briefly Exceeded $ 22,000 and Ethereum Up 90% Before “Merger”

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The August CPI report will be released on Tuesday, which will allow investors to understand in which direction inflation is moving and to try to predict the future actions of the US Federal Reserve System (Fed) on interest rates.

Previous rate hikes by the Fed, which is trying to curb inflation, have hit the stock market. In turn, the cryptocurrency, which belongs to the risky asset category, has lost nearly $ 2 trillion in capitalization since its November high. Bitcoin has lost more than 50% in price since the beginning of the year.

The “merger” of the Ethereum network, which means the transition of the Ethereum blockchain from the Proof-of-Work model to the Proof-of-Stake model, will greatly reduce the amount of energy spent on its operation. Ethereum supporters hope this presents an opportunity to expand cryptocurrency adoption, with experts warning that the “merger” will not necessarily speed up the Ethereum network and is unlikely to reduce the fees associated with transactions.

Against the backdrop of expectations, Ethereum, which hit an annual low in mid-June, was far ahead of bitcoin in terms of growth. Since June 19, it has increased by more than 90%, while Bitcoin has increased by about 20%.

However, cryptocurrency growth may soon come to an end, as the Fed is expected to raise interest rates again next week, which will result in a reduction in the market.

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