Main Takeaway: Market Drops Below $1 Trillion & Bitcoin Puts In A New Low On The Daily Close
The cryptocurrency markets are down 5% and have once again fallen below the $1 trillion dollar mark with Bitcoin rendering its lowest daily close of $18,790 since December 2020. Bitcoin miner revenue is also reaching a critical point which could result in a margin squeeze as the hash price falls. This is all occurring in the midst of global deleveraging, a rising dollar, spiking volatility, and bonds and equities selling. The trends are pointing downwards so investors should be careful in their trading approach.
Key Stories: Ethereum Approaching The Merge
Ethereum’s Bellatrix upgrade has taken place, which is the final phase before the merge to Proof-of-Stake. The Merge is expected to happen around September 13th to 15th. Polygon has said that this move to PoS will cancel out 99.9% of the Ethereum network’s carbon emissions.
The second news story is that Russia and several friendly countries are considering cross-border settlements in stablecoins. However, there’s an issue with the pegging system in the countries deciding what to peg the stablecoin to and who to trust to issue the currency. There’s a counterparty risk to this. It’s still early to tell how countries can possibly implement cross-border stablecoin payment and financial mechanisms.