Major cryptocurrencies remain unaffected by inflation data, Ethereum Shanghai Fork

Good morning. Here’s what happens:

the prices: Bitcoin and Ether traded flat after the moderately encouraging inflation report and the unveiling of the Ethereum Shanghai upgrade.

ideas: Glenn Williams, an analyst at CoinDesk wrote:

Bitcoin and Ether remain largely unaffected by major events

Neither the hotly anticipated inflation data nor the eagerly awaited Ethereum Shanghai upgrade can move bitcoin or ether much from their latest positions.

Bitcoin, the largest cryptocurrency by market cap, recently traded around $29,900, down the better part of a percentage point over the past 24 hours. Ether, the second largest cryptocurrency by market cap, was hovering around $1,905, up almost a percentage point. Many investors have been looking for both cryptocurrencies to react more aggressively to Wednesday’s events, particularly the Ethereum “hard fork,” a continuation of the platform’s shift from proof-of-work to a faster and more efficient proof-of-stake protocol.

We have to look forward to what’s in store on the Ethereum roadmap,” wrote Jake Boyle, director of retail cryptocurrency brokerage Caleb & Brown. “A lot of progress has been made, and a lot will be achieved. That paints a very optimistic picture going forward.”

Boyle added: “We are heading into a recession, or at least it looks like it is, and retail investors will be the profile of investors who will sell in the situation we find ourselves in. But that doesn’t seem to be the case, and that suggests to me that the profile of investors in the Ethereum ecosystem Right now it tends to be on a larger scale. They seem more institutional grade, and I don’t think that kind of investor would be so quick to sell at this moment in time. They’re focused on the long term.”

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Most of the other major cryptocurrencies have recently been trading flat. The CoinDesk Market Index, a measure of the overall performance of crypto markets, has recently fallen by about half a percentage point. Stock indices were slightly lower, with the Nasdaq and S&P 500 down 0.8% and 0.4%, respectively. Gold continued to settle strongly above $2,039, near an all-time high as investors look to assets to hold their value.

Meanwhile, in an email to CoinDesk, Konstantin Boyko Romanowski, CEO of non-custodial platform Allnodes, wrote an optimistic note about the future of Ethereum.

“With previously locked ETH available again, this could lead to “a spike in staking, increased liquidity, and possibly a price hike,” Boyko Romanowski writes. “An indication of the health of the blockchain, a decrease in the amount of ETH in circulation.”

He added, “The early adopters will be able to reinvest their rewards. At the same time, the removal of uncertainty related to indefinite ETH lock periods is likely to lead to more contribution interest among participating individuals and institutions.”

Bitcoin whales may predict the course of the Bitcoin price

As bitcoin offers new support around $30k, investors may want to track larger unique wallet addresses. Among the wallets that hold large amounts of cryptocurrency to determine the path of the BTC price:

Investors on the 10,000 BTC cliff might be bullish, locked in the asset and increasing their exposure – ready to move higher.

Their positions may represent a support base for Bitcoin prices because investors who went long in the digital asset in January are up 80% year-to-date.

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The Shanghai upgrade on the Ethereum blockchain, also referred to as “Shapella,” took place on Wednesday at 22:27 UTC (6:27 PM EST). The First Mover has been tracking the activation and market effects of an upgrade that will enable, among other things, restricted ETH withdrawals. BTCS CEO Charles Allen and RockX Co-Founder and CEO Zhuling Chen join the conversation. Also, Andre Portillo, Head of Digital Assets at BTG Pactual, gave his analysis of the cryptocurrency markets. Nick Neumann, CEO of Kazaa, discussed the issue of self-custodianship of digital assets.

Live blog, Ethereum upgrade in Shanghai: CoinDesk reporters and editors are recording the first-ever activation of withdrawals from the Ethereum staking mechanism, scheduled for Wednesday at 6:27 PM ET (22:27 UTC). We have the play-by-play in Shanghai – also known as “Chabela” – from what we see on the blockchain and at watch parties.

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