Crypto markets crashed during a subdued trading day after Ethereum officially moved to proof-of-stake.
Bitcoin was trading at $19,763 on Coinbase, down about 0.48% in the past 24 hours, according to data from the exchange.
Meanwhile, Ether is down 4.88% in the past 24 hours, trading at $1,498, according to data from Coinbase. Ether stalled earlier in the day, trading between $1,583 and $1,640 directly before and after The Merge.
The Ethereum Classic and Lido DAO token also rose post-merger before giving up those gains.
Meanwhile, the global crypto market cap is once again flirting with the $1 trillion mark, having flipped back and forth across that mark several times over the past few months.
Word in the street
Matt Weller, global head of market research at Forex.com, told The Block that the Ethereum upgrade went as smoothly as one could have hoped.
However, he went on to say that, “in a classic ‘buy the rumour, sell the news’ reaction, we see Ether falling to its lowest levels for the month.”
Weller attributes this – in part – to “unsophisticated traders who bought in anticipation of a quick gain” rushing to sell, as the near-term benefits of the merger are unlikely to outweigh the difficult macroeconomic environment.
“The narrative benefit of Ethereum’s 99.95% reduction in energy consumption and the fundamental shift in supply and demand to a deflationary asset will likely only be felt over longer-term time frames. “, he concluded.
Ryan Shea, a crypto-economist at Trakx, shared a similar sentiment with The Block on Thursday, noting that the price drop could simply be profit taking.
“While such price action may worry some Ether fans, the most likely explanation is that after rising sharply (up over 25%) in the previous weeks, the correction is simply profit taking by crypto speculators,” he said.
Shea noted that this would explain why ether significantly underperformed bitcoin today, down more than 5.4% from 1.7%.
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