![](https://i.imgur.com/CLvY2jA.png")
13-06-2022, 12:21 PM
Anna Golubova
Sunday June 12, 2022 12:44
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Bitcoin was below $28,000 on Sunday, down 6% during the last week. And Ethereum witnessed even bigger losses, touching a low of $1,433 — the lowest level in about a year and a half — and now trading down 15.6% on the week.
The key macro driver hurting the crypto space, which has largely been trading like a risk-on asset, was another hot inflation release. In May, inflation ran at an annual pace of 8.6% in the U.S. — a fresh 40-year high — versus the expected 8.3%.
In response to the inflation data, Mohamed El-Erian, chief economic advisor at Allianz, told CNBC that the Federal Reserve would have to get even more aggressive with rate hikes.
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Why were Ethereum's losses so significant?
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the world's second-largest cryptocurrency sold off more due to the upcoming Merge problem. The Merge refers to Ethereum's transition to the more energy-efficient proof-of-stake protocol from the proof-of-work protocol, which Bitcoin also uses.
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With the proof-of-stake protocol, miners are no longer needed. Instead, people would stake their coins to check new transactions and add them to the blockchain. This would potentially consume 99% less energy than proof-of-work.
What impacted the price of Ethereum was developers delaying the timing of the difficulty bomb to resolve some bugs that came up during the Merge
More on Bitcoin at: https://www.kitco.com/news/2022-06-12/Cr...iorates%27
Sunday June 12, 2022 12:44
......
Bitcoin was below $28,000 on Sunday, down 6% during the last week. And Ethereum witnessed even bigger losses, touching a low of $1,433 — the lowest level in about a year and a half — and now trading down 15.6% on the week.
The key macro driver hurting the crypto space, which has largely been trading like a risk-on asset, was another hot inflation release. In May, inflation ran at an annual pace of 8.6% in the U.S. — a fresh 40-year high — versus the expected 8.3%.
In response to the inflation data, Mohamed El-Erian, chief economic advisor at Allianz, told CNBC that the Federal Reserve would have to get even more aggressive with rate hikes.
......
Why were Ethereum's losses so significant?
......
the world's second-largest cryptocurrency sold off more due to the upcoming Merge problem. The Merge refers to Ethereum's transition to the more energy-efficient proof-of-stake protocol from the proof-of-work protocol, which Bitcoin also uses.
......
With the proof-of-stake protocol, miners are no longer needed. Instead, people would stake their coins to check new transactions and add them to the blockchain. This would potentially consume 99% less energy than proof-of-work.
What impacted the price of Ethereum was developers delaying the timing of the difficulty bomb to resolve some bugs that came up during the Merge
More on Bitcoin at: https://www.kitco.com/news/2022-06-12/Cr...iorates%27
