Prominent cryptocurrency analyst Nicholas Merten shares what he believes to be a “worst-case scenario” route for Bitcoin (BTC) and Ethereum (ETH).
Analyst shares the worst-case scenario for Bitcoin (BTC) and Ethereum (ETH)
Merten, who has 516,000 YouTube followers, said that the Bitcoin price will definitely drop below $10,000 or even $20,000 in the near future. That cannot be the case,” he says. The crypto analyst points to a chart showing the combined market capitalization of Bitcoin and Ethereum.
The analyst points out that the combined market cap of the two most valuable cryptocurrencies has never returned to the midrange region after a previous bull market. According to Merten, the overall market cap also managed to hold its position above the highs of the last bull market. According to the analyst:
Only this has not happened before. We do this only in bearish markets, not after reaching ATH levels. The truth is it hasn’t happened in the past and I don’t believe it will happen anytime soon, but here is a possible range where we could see the price drop a little bit more.
According to the analyst, BTC and ETH may lose volume in a while
As we quoted as Kriptokoin.com, the combined market value of Bitcoin and Ethereum is approximately $ 1.075 trillion. Merten believes it’s possible for the figure to drop as low as $850 billion, which represents a drop of more than 15 percent. According to the expert, Bitcoin is currently trading below $30,000, while Ethereum is trading in the middle of $2,000. Merten points out that these levels represent the worst-case scenario for the most valuable cryptocurrencies.
What is Merge and why is it important to Ethereum?
Merge refers to the upcoming merger between Ethereum’s mainnet and PoS system. The ‘merge’ marks the end of PoW for Ethereum in favor of the PoS mechanism. Ethereum’s mainet currently uses the PoW consensus mechanism. Consensus mechanism is a process in which a network changes the state of a Blockchain network by reaching mutual consensus of various nodes. It is the concept that forms the basis of blockchain technology. As the size of the energy consumed by mining attracts more and more attention, Ethereum’s merger is expected to change the course of the industry.
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