Good morning Here’s what happens:
Prices: Bitcoin and Ether traded flat after a mildly encouraging inflation report and the unveiling of the Ethereum Shanghai upgrade.
Insights: Watch whales to get a sense of where Bitcoin’s price might be headed, writes CoinDesk analyst Glenn Williams
Bitcoin, Ether remain largely unaffected by major events
Neither much-anticipated inflation data nor a much-anticipated upgrade from Ethereum Shanghai could move Bitcoin or Ether much from their recent places.
Bitcoin, the largest cryptocurrency by market cap, recently traded around $29,900, down most of a percentage point over the past 24 hours. Ether, the second largest cryptocurrency in market value, fluctuated around $1,905, up nearly a percentage point. Many investors had expected both cryptos to react more strongly to Wednesday’s events, particularly Ethereum’s “hard fork,” a continuation of the platform’s transformation from a proof-of-work to a faster, more efficient proof-of-stake Protocol.
“We should look ahead to what lies ahead for the Ethereum roadmap,” wrote Jake Boyle, director of retail crypto brokerage Caleb & Brown. “Much progress has been made and much remains to be done. This paints an extremely optimistic picture for the future.”
Boyle added: “We are headed for a recession, or at least it seems so, and retail investors would be the profile of investors who would sell in the situation we are in. But that doesn’t seem to be the case. and that suggests to me that the profile of investors in the Ethereum ecosystem is currently tending to be larger. They seem to be more institutional and I don’t think these types of investors would be quick to sell right now. They are long-term oriented.”
Most other major cryptos have recently traded flat. The CoinDesk Market Index, a measure of the overall performance of crypto markets, has recently fallen about half a percentage point. Stock indexes fell slightly, with the tech-focused Nasdaq and S&P 500 falling 0.8% and 0.4%, respectively. Gold continued to hold strong above $2,039, near its all-time high, as investors look for assets that will hold their value.
In an email to CoinDesk, Konstantin Boyko-Romanovsky, CEO of non-custodial platform Allnodes, expressed optimism about the future of Ethereum.
“If the previously locked ETH becomes available again, it could lead to “an increase in the stake ratio, increased liquidity and potentially higher prices,” Boyko-Romanovsky wrote in the Blockchain Health Indicator and decrease the amount of circulating ETH.”
He added: “First stakers will be able to reinvest their staking rewards. At the same time, removing the uncertainty surrounding indefinite ETH lock times will likely attract more interest in staking from private and institutional participants.”
Bitcoin whales can forecast the price path of BTC
As Bitcoin establishes new support around $30,000, investors may wish to pursue larger unique wallet addresses. Among the wallets that hold significant amounts of crypto to determine BTC’s price path:
Investors at the 10,000 BTC abyss can be bullish, committed to the asset and increasing their exposure – ready to move to a higher tier.
Their positions could provide a base of support for BTC prices as investors who went long digital assets in January are up 80% year-to-date.
The Shanghai upgrade on the Ethereum blockchain, also known as “Shapella”, took place at 22:27 UTC (18:27 EST) on Wednesday. “First Mover” tracked the activation and market impact of the upgrade, which will enable plugged ETH withdrawals, among other things. Charles Allen, CEO of BTCS Inc., and Zhuling Chen, co-founder and CEO of RockX, joined the conversation. Andre Portilho, Head of Digital Assets at BTG Pactual, also provided his analysis of the crypto markets. And Casa CEO Nick Neuman spoke about self-custody of digital assets.
LIVE BLOG, Shanghai Ethereum Upgrade: CoinDesk reporters and editors cover the first-ever activation of withdrawals from the Ethereum staking mechanism, scheduled for Wednesday at 18:27 ET (22:27 UTC). We have the play-by-play on Shanghai – aka “Shapella” – from what we see on the blockchain and on the watch parties.
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