Why Bitcoin, Ethereum and Cardano are rising higher today
What happened
It has been another solid day in the cryptocurrency world, with headlines that the total value of all cryptocurrencies has again exceeded the threshold of 1 trillion dollars, which strengthens investor confidence in this sector.
This increase is largely driven by recent relocations Bitcoin (BTC 4.75%), Ethereum (ETH 9.71%)and Cardano (ADA 8.71%). Starting at. 10:15 ET these three top 10 tokens were up 4.1%, 9.1% and 9.4% respectively.
While Bitcoin’s solid momentum over the past week, driven by what appears to be renewed bullish sentiment and strong demand for digital currencies, is making headlines, it is Ethereum’s major movements higher that have caught the attention of most investors. Last Thursday, Ethereum began adding to the news that a preliminary date of September 19 has been set for the “merger”, which will combine Ethereum’s mainnet and Beacon Chain, and create a proof-of-stake blockchain. Since Thursday morning, Ethereum has risen more than 35% at the time of writing.
Cardano seems to be taking advantage of the enthusiasm surrounding Ethereum’s upcoming merger as the former prepares for the Vasil hard fork, which will provide a number of improvements to Cardano’s blockchain. This hard fork had been delayed, as had Ethereum’s merger, leading to previous concerns. But with more optimism than pessimism today, it seems investors are taking a more positive stance on network upgrades to start the week.
So what
The ongoing upgrades for Ethereum and Cardano are a source of significant uncertainty for investors. There is always a chance that something will go wrong and the value can be ruined in the process of making improvements. With bearish sentiment prevailing in the past, it seems that investors are increasingly failing on the side of caution, waiting for concrete evidence that everything will be in order before they jump in.
While those on Ethereum’s development team, including Ethereum founder Tim Beiko (who originally posted the date of September 19), have made sure to refrain from giving a “hard” date, investors now have a rough timeline for this catalyst. Other positive factors, such as the narrowing of the spread between Ether and Ether, indicate that investors have considerable faith in the idea that this merger will take place before the end of the third quarter.
What now
The next few months seem to be unstable for these top crytpo projects. These various upgrades, which were previously seen as both catalysts and potential sources of uncertainty, are again viewed with a positive lens. This means that, right now, Ethereum’s merger and Cardano’s Vasil hard fork are the bullish catalysts investors have been hoping for.
That said, it remains to be seen whether this momentum can be continued. This bear market is stupid, and the general sentiment in the crypto sector continues to reflect extreme fear. Until that changes, it will be difficult for such momentum-driven rallies to stay steady. Therefore, investors may want to be cautious before investing aggressively in these top-growth projects.
