As the market awaits further macroeconomic news, crypto investors seek out for news on the upcoming Shapella hard fork. The upgrade has the potential to affect the entire blockchain ecosystem as well as influence Bitcoin. With a flat IV, investors appear to have taken a cautious stance ahead of the event. The next few weeks could be an important milestone for the entire crypto market.
The cryptocurrency world has had a wild ride over the past few years. After a slew of massive losses following the initial wave of investors, the two biggest cryptocurrencies--Bitcoin and Ethereum--have managed to turn things around in a drastic, unexpected way. Even more recent, they have broken out of their correlation with broader markets such as the S&P 500 and Nasdaq 100, last year trading in tandem.
However, the market has been a bit slow recently, and investors are uncertain if this is just a short term hiccup or a more structural issue. Ethereum, which is currently leading the market capitalization, is on the verge of a major upgrade with Shapella planned for April 12.
This upgrade is extremely important, allowing ETH users to un-stake their assets from the “Beacon Chain,” and many are speculating how this would affect the price. Crypto analysis firm Blofin recorded a minor uptick in traders purchasing “call” contracts ahead of the event, but overall the sentiment is neutral.
Furthermore, the macroeconomic outlook of the U.S. has some investors worried and hesitant to make any moves. Recession trading could be one of the reasons for the recent weakness in BTC prices and the latest U.S. employment and trade data has raised the possibility of a recession. Despite the lack of movement in the market, investor expectations remain relatively stable and mid to long-term performance of mainstream cryptos still looks bullish.
Overall, the crypto market looks uncertain in the short term, but the long term still looks quiet promising and investors should keep an eye on incoming news from both the macroeconomic and crypto space.
John Hughes
- 2023-04-06
What to Expect From the Shapella Hardfork
Learn about the upcoming Shapella hard fork, which has the potential to affect the entire blockchain ecosystem and influence Bitcoin. Plus, the current economic outlook of the US and its possible impact on the crypto world.
