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Cryptoasset markets have staged a rally in the past week as we enter the final 72 hours ahead of The Merge of the Ethereum network. The event is focusing all minds in the sector as investors and users wait to see its impact on the market (more below). 

Last week, ether, the token associated with the Ethereum blockchain, rallied around 10% across the week, despite falls on Wednesday. The token began the week trading around $1,560 before falling below $1,500 midweek. From that point, it rallied to now trade just below $1,720. 

Bitcoin meanwhile saw its price jump too. Having begun the week just below $20,000, it fell to sub $18,500 before rallying to now trade around $21,600 - an increase of around 8% over seven days. Talk has abounded of a so-called ‘short squeeze’ on bitcoin with bullish investors piling in to take on short sellers. 

This week a raft of economic data could move prices, with the US inflation indicators most likely to shift the dial.
 

Google launches Ethereum Merge counter

As Ethereum’s Merge ticks closer, Google has published a countdown clock in its search engine. Searching “Ethereum Merge” will bring up a timer displaying a countdown to the completion of The Merge. 

All eyes in the crypto community are now on this long-awaited event, with significant market activity ramping up as users and investors position themselves ahead of the completion of the event. The token and its blockchain, while not the largest by market capitalization, are enormously influential in the sector because it is one of the most widely used platforms for crypto projects. 

The frenetic activity has reignited discussion over a supposed ‘flipping’ taking place in 2023. This is a much-fabled event in the crypto community where the price of ether overtakes that of bitcoin. While we’re some way away from that prospect, much will be decided once we understand better the economic effects of The Merge. 
 

Evidence of ‘bear market building’ gathers for crypto

As the market moves through ongoing troubled times, the examples of institutional ‘bear building’ - where major players take stakes in assets at favorable prices - are growing. 

One of the most influential players in the space, Michael Saylor’s Microstrategy, has announced its intention to sell $500 million in stock in order to fund more cryptoasset acquisitions. This is a not uncommon move in such market conditions to provide liquidity to buy assets viewed as undervalued - which Saylor clearly thinks with his bitcoin strategy. 

Elsewhere, a State Street executive Irfan Ahmad made comments with an Australian news outlet Sydney Morning Herald saying that despite volatility the firm’s clients were still buying into the space. With such an array of projects and the growing sophistication of the sector, Ahmad says the firm’s clients have been asking pragmatically about how they can gain more access to the sector. 
 

Columbia Records files trademarks for NFTs

Major record label Columbia Records, which is owned by Sony Music Entertainment, has filed for trademarks on a series of crypto-related products. The firm has registered trademarks for downloadable audio recordings authenticated by NFTs, NFT-authenticated live performance videos and recordings, and other multimedia files authenticated via NFT.

NFTs have had a difficult few months as the market has adjusted to a fast-moving Bullrun in 2021 and valuations have come back down to earth. But what is key in the market is that the technology is still highly valuable, even if some projects aren’t quite as enduring.

The example here of Columbia’s is innovative as it gives music fans the ability to access digital projects and retain ownership of those products, confirmed via blockchain. The potential for NFT technology goes way beyond digital artwork alone and can be used for many assets which aren’t ‘fungible,’ i.e. exchangeable one-for-one like a currency, but have a value and a requirement to guarantee ownership digitally via blockchain. In the future, this could include many assets such as stocks, commodities, or even physical property. 

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