Bitcoin & Cryptocurrency News - Market Crash or Bull Run?

The effect of supply chain issues, energy costs, new pandemic waves and the ongoing war to crypto market

Now given that btc prices are well above these levels and we’re at the beginning of what appears to be a recovery rally you might be wondering whether we will drop down to the 10k range at all.

And the answer is that it’s still very possible if not likely. That’s simply because all the other macro factors weighing on the crypto market such as supply chain issues energy costs new pandemic waves and the ongoing war in ukraine are still around and probably won’t be going away anytime soon. Because of these and other factors many investors expect the end of this year to be brutal for the markets and this timeline is once again consistent with when the bottom of the current crypto bear market could be. Anyhow another crypto specific factor that’s been contributing to the recent rally is the news that ethereum developers have decided on a tentative date for when ethereum will transition from proof of work to proof of stake. The merge is now scheduled to occur at the end of september with some developers suggesting the specific date of monday the 19th of september.

Make no mistake this is a huge deal for the entire crypto market not just eth. That’s because many major altcoins exist as erc20 tokens on the ethereum blockchain including stable coins like tethers usdt and circles usdc. Ethereum is also the largest blockchain by total value locked and its tvl is even bigger when you include all the layer twos and side chains that rely on ethereum for security not only that most of the largest nft. Metaverse and even blockchain gaming projects exist on or derive their security from ethereum. As such it’s quite possible that the setting of a tentative date for the merge is one of if not the primary factor behind the recent crypto market pump.

This makes sense given that eth was one of the biggest gainers last week. It would also explain why ethereum classics etc coin and lido finance’s ldo token were among the other moonshots. If you remember about ethereum classic you’ll know that many investors are expecting etc to benefit from all the mining machines that will be left behind by ethereum miners when ethereum transitions to proof of stake. If you remember about lido finance then you’ll know that the protocol is the single largest staker of eth on ethereum’s beacon chain and many holders of lido finance’s eth token were starting to become concerned about when exactly the merge would occur. So-called ethereum killers like avalanche and solana also seem to be benefiting from news of the merge and that’s probably because many investors are probably starting to hedge their crypto portfolios by diversifying into other ethereum competitors in case the merge goes horribly wrong.

Meanwhile institutional investors have started accumulating eth in anticipation of the merge and it seems that even ethereum nfts are starting to pop off as environmentally conscious investors will feel comfortable buying collections on a proof-of-stake blockchain. This is somewhat unfortunate given that proof-of-work isn’t nearly as bad for the environment as many media outlets and activist organizations would have. Another headline that has crypto holders talking is the news that celsius has officially filed for bankruptcy if you remember about celsius’s collapse you’ll know that we speculated that celsius was engaging in some high-risk behavior behind the scenes to continue paying out high yields to its users. Celsius’s bankruptcy filings have confirmed these speculations with the crypto platform having 4. 3 billion dollars in assets versus 5.

5 billion dollars in liabilities ie debt. This means that celsius is 1. 2 billion dollars in the whole hence its bankruptcy filing it’s important to note that celsius has filed for chapter 11 bankruptcy. This means its crypto platform will continue to operate while the company restructures but it also means that celsius users are unlikely to get their crypto back anytime soon if at all. That’s because chapter 11 bankruptcy confirms that celsius is the owner of all the assets on its platform and that means the company can sell off these assets to plug the 1.

2 billion hole it created. Note that this was apparently in celsius’s terms and conditions all along to add insult to injury celsius has not provided any dates for when users will be able to withdraw. In celsius’s defense though the chapter 11 proceedings are set to begin today so they’re not just buying time when they say they don’t know they literally don’t know. Now for what it’s worth celsius noted on twitter that quote the vast majority of our creditors are our customers which seems to suggest that celsius users could eventually get some of their crypto back but the question is when. As many news outlets have pointed out celsius users could be in for a mt gox type scenario.

For reference mt gox was a cryptocurrency exchange that went down way back in 2014 and users are still in the process of getting their btc back eight years later. Now before you get too upset take a second to consider that many institutional investors that are bullish on btc actually offered to buy the btc claim of mt gox users for cash at a discount. For example in 2021 fortress investments offered mt gox users 80 of the value of their lost btc if they sold their claim and i expect to see similar offers by institutional investors for claims on btc eth and other major altcoins that are stuck on celsius. It goes without saying that what these institutions are likely to be offering will be less than ideal but it will offer an exit to those celsius users who need it the most. .


The effect of supply chain issues, energy costs, new pandemic waves and the ongoing war to crypto market
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