Why It Matters:<\/strong>\u00a0Cryptocurrencies failed to muster strength even as other risk assets like stocks soared on Thursday.\u00a0<\/p>\nBitcoin, Ethereum and Dogecoin traded below the $30,000, $2,000 and 8 cents levels, respectively, at press time. On Thursday, the S&P500 closed 2% higher and the Nasdaq added 2.7%.\u00a0<\/p>\n
Altcoins are particularly under pressure as investors tend to shed riskier assets during downturns.\u00a0\u00a0<\/p>\n
OANDA senior market analyst\u00a0Edward Moya<\/strong>\u00a0attributed the sharper fall in ETH to scaling worries post “The Merge,” or the official transition to proof-of-stake.<\/p>\n\u201cEthereum is selling off as many crypto traders start to doubt Ethereum 2 will be successful,\u201d said Moya in a note.<\/p>\n
\u201cEthereum 2 merge was delayed until August, but it won\u2019t truly let Ethereum be scaled up, they will use a multi-chain system and will connect to a wrath of Layer 2 scaling solutions.\u201d<\/p>\n
Moya noted that Ethereum has potent rivals that \u201ccan do a better job of scaling up and this latest update might force people to jump ship.\u201d<\/p>\n
Cryptocurrency trader and analyst\u00a0Micha\u00ebl van de Poppe<\/strong>\u00a0tweeted that he was looking at the $28,800 and $29,300 levels for Bitcoin’s upward movement, saying that the apex coin could make its way to $31,000 and $32,800.<\/p>\n