![\"$30](\"https:\/\/finbold.com\/app\/uploads\/2022\/09\/30-billion-leaves-crypto-market-in-24-hours-as-Ethereums-Merge-fails-to-ignite-the-rally.jpeg\")
<\/div>\nThe cryptocurrency market<\/a> is still reacting to the historic Ethereum (ETH<\/a>) Merge<\/a> event that transitioned the blockchain<\/a> to a Proof-of-Stake (PoS<\/a>) status. Despite the event being touted as bullish<\/a>, 24 hours later, the crypto market is recording capital outflows outweighed by other factors like skyrocketing inflation.\u00a0<\/p>\n Indeed, as of September 16, the global crypto market capitalization stood at $958.83 billion, a drop of about 3.2% or $32.24 billion from the $991.07 billion recorded on September 15.<\/p>\n Before the Merge, a section of the crypto market had projected that the event would likely send Ethereum\u2019s price skyrocketing. However, none of the projections have so far come true 24 hours later, with ETH trading at $1,400 by press time, a drop of almost 10% over the period.\u00a0<\/p>\n Similarly, Bitcoin (BTC<\/a>) is trading in the red, dropping below the physiological $20,000 level. By press time, the crypto was valued at $19,700.<\/p>\n Although the Merge appears not to have any short-term positive Iimpact on the general cryptocurrency market, the sector will need another bullish narrative to trigger a future rally.\u00a0<\/p>\n With the Merge turning out successful, the bulls appear overpowered, a factor that potentially indicates that the upgrade was a \u201cbuy the rumor, sell the news\u201d event.\u00a0<\/p>\n This scenario is partly highlighted by a previous Finbold report<\/a> that indicated that Ethereum inflows to exchanges started rising on September 12, amounting to about 700,000 ETH, before growing to about 1.7 million ETH on September 14.\u00a0<\/p>\n At the same time, Ethereum\u2019s social dominance also surged<\/a> before the upgrade. In particular, on September 13, the asset\u2019s social dominance stood at 14.79% after climbing +23.19% in only one month.<\/p>\n Similarly, Meltem Demirors, the chief strategy officer<\/a> of crypto asset management company CoinShares, pointed out that macro environment factors will potentially deter new capital from entering Ethereum while referring to the update as a \u2018buy the rumor, sell the news event.\u2019\u00a0<\/p>\n At the same time, the sell-off appears to stem from general macroeconomic factors, with surging inflation the main trigger. Following the recent inflation figures, there are expectations that the Federal Reserve will likely hike interest rates to contain the situation.\u00a0<\/p>\n Therefore, the next FED meeting is considered a key indicator for the market course, as highlighted by crypto trading<\/a> expert Micha\u00ebl van de Poppe.\u00a0<\/p>\n![\"\"](\"https:\/\/finbold.com\/app\/uploads\/2022\/09\/image-9-1024x324.png)
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Impact of the Merge<\/h2>\n
All eyes on the FED\u00a0<\/h2>\n