Yahoo Finance Live examines cryptocurrency pricing ahead of ethereum's merge update.
- You want another head scratcher? Bitcoin, always a head scratcher. My play, continuing its week long rally ahead of the Ethereum merge, which is expected to be completed this week. Prices holding above another key level. Check it out, above 22,3000 now.
It's jumping, highest level in a month. Bitcoin up 15% plus over the last week. However, the Federal Reserve is expected to increase rates again next week by 75 basis points, which will likely, we think, put a stop to this crypto rally. All in all, still a very difficult year for that sector. Nearly 2 trillion has been wiped off the crypto market since the all-time high in November.
Bitcoin, itself, down more than 50% this year, even though it was a very nice gain on this day, up about 3% largely tethered to the NASDAQ closest to a [INAUDIBLE] tech stock.
- Yeah, it is. And we've seen this rise here in Bitcoin, this isn't the first time it was largely correlated what we have seen play out in US equities. So once again, we're seeing that in Bitcoin over the last couple of days. There's still, though, a lot of risks here, obviously. We talk about a day in and day out when it comes to investing in crypto, a lot of the key projects that had failed over the last couple of months of bankruptcies of course that have rocked the crypto sector.
So investors seeing an opportunity to jump in, you mentioned the Fed meeting. Obviously, higher rates could be a huge headwind here for crypto, also the Ethereum merge, and then the inflation data tomorrow. If that inflation data comes in very hot we could, of course, see Bitcoin sink. I don't it's always hard to kind of make sense of the movement that we are seeing.
- I'll tell you what, crypto has become a levered play on the indices. So don't trade the NASDAQ, don't trade the S&P 500, or the futures, trade Bitcoin. That is the biggest levered play to the Fed, I think, right now.
- That was Jared Blikre's advice.
- You heard it here first.
- Find him on Twitter.