What a difference a few days can make in the world of cryptocurrency. Just last week, Ether was on a tear, flirting with the $2,000 mark and giving crypto investors hope that the digital currency might finally be staging a strong recovery after the devastating meltdown in May and June.
But those hopes were dashed this week, as Ether plunged to $1,600 on Friday after a series of bad news ranging from heightened fears about inflation to the monetary policies adopted by the U.S. FED.
The sell-off was widespread, with nearly all major cryptocurrencies posting double-digit percentage losses. Bitcoin, the world’s most valuable cryptocurrency, was hit the hardest, wiping out weeks of gains and plunging to $21,230.
Meanwhile, SHIB kept holding on despite the bears' best efforts. It looks like this is linked to a recent increase in the coin's burn rate. Around 14 million SHIB were burned on August 17th, which then skyrocketed to over 170 million on August 18th.
So, what does the future hold for Ether and other digital currencies? It’s hard to say, but one thing is certain: the crypto markets are once again in a state of flux, the drop in crypto prices is but a reminder that the digital currency market is still highly volatile and susceptible to sharp sell-offs. So make sure to buckle up and hold on tight. It’s going to be a bumpy ride.
What do you guys think will happen with the transfer to PoS???