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The crypto market is abuzz this morning as two major milestones look to take place in the space of two days. More below on both.

Bitcoin has touched above $30,000 for the first time since June last year, while the Ethereum Shapella update is imminently going ahead. 

Ether is moving strongly too but has yet to recapture $2,000. If and when it does this it will be above that level for the first time since May last year. However much now rests on the reaction to the Shapella update. 
 

Bitcoin passes $30,000

Bitcoin, the world’s largest cryptoasset has broken through $30,000 in value for the first time since June 2022. BTC has risen around 6% since the beginning of April and is up around 46% over 30 days. 

It has been on an upward trajectory since reaching a nadir of just above $15,400 in November last year. Investors have turned bullish on the cryptoasset - although initial progress was highly tentative - as markets look to the price at the end of rising interest rates in the US and globally. 

Momentum has steadily built for Bitcoin as investors digest macroeconomic shifts in data. The next one markets will be watching is US inflation, due tomorrow. If inflation continues to recede we could see some consolidation above $30,000. The price is still wavering around the milestone currently. 

The cryptoasset has a long way to go still in terms of retreading the all-time high (ATH) above $64,000 set in November 2021, however. 
 

Ethereum Shapella update imminent

The Ethereum Shapella (Shanghai/Capella) update is set to come to fruition around midnight tomorrow UK time. The update has been the most hotly anticipated by the crypto community since the Merge began the process of moving Ethereum away from crypto mining permanently. 

The Shapella update completes this process and will unlock staked ether tokens for investors who put faith in the project’s direction of travel, earning a yield along the way. There is considerable speculation as to what will happen to the market as a result.

It is highly likely that large holders of staked tokens will sell their positions in order to reclaim funds and cash in on progress. While some might be upside down in terms of price, they will have unlocked significant staking rewards along the way to sugar the pill somewhat. 

Selling might cause some short-term price volatility but with more optimism underpinning the market thanks to prevailing macroeconomic factors than we saw during the Merge, hopefully, this will be short-lived. 

Long-term we now have to analyze the investment case for ether - one that will shortly include staking, earning yield, and freedom to withdraw when required. It is a significant moment for the sector and another touchpoint in the debate between proof-of-stake and proof-of-work protocols. 

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