Gate.ioBlogMarket Trend 23/9 - 29/9｜The Crypto Market Begins To Rebound As Global Economic Markets Suffer, Vitalik Buterin Unveils The Next Two Priorities For
Market Trend 23/9 - 29/9｜The Crypto Market Begins To Rebound As Global Economic Markets Suffer, Vitalik Buterin Unveils The Next Two Priorities For
30 September 09:27
Following a week where the bear market was in full swing, bleeding red through the charts, the crypto market appears to have taken a more positive turn, with the first sighting of positive upticks across a majority of the top 20 assets – all whilst the stocks market and other global economic markets stumble further into a bearish spiral. On a more controversial note, the infamous Terra founder, Do Kwon, has had an international Interpol red notice issued as the manhunt for him ensues, leading South Korean authorities to move to freeze an estimated $67 million worth of Bitcoin belonging to the suspect. However, moving away from controversial figures, Ethereum founder, Vitalik Buterin, has revealed the two future priorities for the Ethereum network now that the much-anticipated Merge has been successfully executed.
Across the coming week, it is likely that this more bearish sentiment will continue across the market, granting some respite from the harsh crypto winter that is in full swing. With Vitalik Buterin having officially consolidated the future plans for the Ethereum network, it is likely that a more bullish sentiment will begin to form around Ether, as there is wider clarity and transparency on the future of the network. However, in regards to the gradually unfolding manhunt for Do Kwon, only time will tell whether justice will be served for those affected by the Terra collapse.
The Crypto Market Begins To Rebound As Global Economic Markets Suffer
The past quarter has cast a shadow over the crypto market, inducing an early crypto winter that depleted the total market cap below one trillion dollars and crashing various currencies below their 90-day SMAs and into extreme price territories. This bearish market activity has since extended across various financial markets, including the stocks market, which has fallen into a deep bearish landscape, with the S&P 500 closing at its lowest level of 2022 on Monday as well as a new intraday low for the year being hit on Tuesday. However, analysts are predicting that the correlation between both stocks and cryptocurrencies is potentially weakening, as, despite the bearishness of the stock market, the cryptocurrency market has witnessed an uptrend this week, with Bitcoin finally moving above $20,000 after weeks of sitting below this critical price point.
However, despite the positive trajectory currently witnessed across the market, the strengthening of the dollar index, which tracks the greenback against a basket of currencies, is now up by 18% this year alone. Yet, as Bitcoin moves inversely to the dollar, this strong greenback could prove negative for Bitcoin in the future – suggesting a role reversal may be imminent.
Bitcoin Moves Above $20,000 once again. Source: Coinmarketcap
Do Kwon’s International Manhunt Ensues
The infamous Terra co-founder and CEO responsible for the devastating crash of the Terra ecosystem earlier this year, Do Kwon, has had an Interpol red notice issued leading to an international manhunt despite his claims that he is making ‘zero effort to hide’ from international authorities, despite having seemingly vanished from Singapore. However, in an initiative to try and coax Do Kwon into surrendering himself, South Korean authorities are moving to seize approximately 3,313 Bitcoin (or $67 million) that has been linked to Kwon’s Luna Foundation Guard.
This comes in light of Kwon being alleged to have created this new wallet for the Luna Foundation Guard following an international arrest warrant being put out for him for allegedly violating South Korean capital-markets laws. A researcher into the current case stated: “CryptoQuant specified new Bitcoin addresses owned by LFG based on transaction patterns, adjacent flows and material non-public information,”.
Do Kwon. Source: Bloomberg
Vitalik Buterin Unveils The Next Two Priorities For Ethereum
Vitalik Buterin confirms the Merge deployment. Source: Twitter
Following Ethereum’s historic Merge, co-founder and CEO, Vitalik Buterin has revealed the Ethereum network’s upcoming priorities for the coming months to continue bolstering the Ethereum ecosystem. Following a comment stating that the Merge ‘was a big moment for the Ethereum ecosystem’, Buterin identified two priorities – scalability and transitioning Ethereum into ‘stable mode’.
The issue of scalability has historically been a critical issue within the Ethereum network, particularly as the network has failed to scale in line with market conditions and demands, often resulting in extortionate gas fees and general network failure. Buterin has stated that ‘in all layers’ of the Ethereum ecosystem scalability needs to be brought to the forefront as a means of improving the overall efficiency of the network and as a means of beginning to resolve the blockchain trilemma.
Additionally, Buterin commented that Ethereum has long been in ‘rapid fire development mode’ as opposed to being ‘stable’ and has suggested that a transition to the latter is an integral and inevitable step towards the future of the network. Yet, with the Ethereum network already amidst a ‘long and complicated transition’, it is likely that this transition will be induced as the network continues to grow a foster a bigger community.
Author: Gate.io Researcher: Matthew Webster-Dowsing * This article represents only the views of the researcher and does not constitute any investment suggestions. *Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.