A subsidiary of Chicago-based trading giant DRW Holdings cryptocurrency trading firm Cumberland announced that the upcoming Merge upgrade Ethereum He said it would be a “real catalyst” for
“The Impact of End of Miner Sales on Ethereum Cannot Be Ignored”
According to analysis by Jonah van Bourg, Cumberland’s chief commercial officer, the highly anticipated upgrade will eliminate $20 million a day of ETH miner sales. According to Van Bourg, this factor is “impossible to ignore”.
Only major macroeconomic negative developments can reverse this factor, according to the company’s analysts.
However, Cumberland claims that the cryptocurrency market will struggle to outperform due to significant macro hurdles.
Thus, the Merge (if completed successfully) is now a real catalyst: the impact of removing ~$20M/day of miner selling is impossible to ignore. Thus, it will take macro headwinds to offset the impact of that flow’s sudden disappearance –@jvb_xyz
— Cumberland (@CumberlandSays) August 25, 2022
According to Cumberland, Major Liquidations Will Not Happen in the Cryptocurrency Market in the Near Future
At the same time, Cumberland believes that the cryptocurrency market will not see major liquidations in the near future. This means that Bitcoin and major altcoins will continue to move with US equities, prolonging the volatile series of price movements, according to the company.
There is a widespread expectation that the Fed will increase its aggressive monetary policy. Louis Federal Reserve Bank President James Bullard said earlier today that interest rates were not high enough and predicted that inflation would be more permanent.
Regarding this, the company said:
“As the summer draws to a close, many markets are at a crossroads: equities stall as recession indicators resurface, most commodities rebound on tighter futures supply concerns, and all eyes are on the Fed to signal the upcoming direction of rates.”
Ethereum mostly outperformed Bitcoin ahead of the Merge upgrade, which was confirmed to happen next month.
On the other hand, experts who stated that the Merge update will benefit not only Ethereum but the entire market, predict that the direction of the market will be upwards.
*Not investment advice.
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