[Bitcoin Now] $20,000 on a Precarious Tightrope... Ethereum Rises Ahead of the Merge

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The price of the leading cryptocurrency Bitcoin continues to show a sluggish trend around the $20,000 mark.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:05 a.m. on the 6th, the price of Bitcoin was recorded at $19,926 (approximately 27.25 million KRW), up 0.28% from the previous day.

Bitcoin prices have been declining for several days following the hawkish remarks by Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole meeting. With the U.S. stock market, which tends to move in sync, closed, Bitcoin has been hovering around the $20,000 level for nine consecutive days. Bitcoin briefly rose back to $20,000 around 10 a.m. that day but soon turned downward again.

However, Ethereum, the representative altcoin, is on the rise. At the same time, Ethereum was recorded at $1,638 (approximately 2.24 million KRW), up 5.33% from the previous day. The rise in Ethereum’s price is estimated to be driven by investor expectations ahead of the Merge upgrade. Ethereum is scheduled to undergo the Merge upgrade in mid-month, changing its consensus mechanism from Proof of Work to Proof of Stake.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, fell by 1 point from the previous day to 22 points (fear) on the same day. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating optimism.