- Ethereum is set to outperform Bitcoin for the rest of 2022 as per Arthur.
- The Merge is finally expected on September 19th, according to developers.
Arthur Hayes, the former CEO of BitMEX, predicts that Ethereum will hit $5,000 by the end of the first quarter of 2023. Based on two assumptions, his forecast assumes both a “pivot” by the Federal Reserve as well as the success of an upgrade to the second biggest cryptocurrency.
As the co-founder explains in his recent blog post, Ethereum is set to outperform Bitcoin for the rest of 2022. Although a Fed reversal would be good for all asset prices, the Merge is an Ethereum-specific event that “will have an incredibly powerful impact on the price of ETH,” according to his assessment.
All Eyes on the Upcoming Merge
Merge is the long-awaited Ethereum update that will change the consensus process from Proof of Work to Proof of Stake. As a result, Ethereum miners will be made obsolete, while investors of the cryptocurrency will be able to receive returns by staking their holdings.
Ethereum’s energy efficiency is the major purpose of the update, but it is also predicted to decrease Ether’s supply issuance rate by 90%. Hayes expects the improvement to “drive the price of Ether up exponentially” when combined with the burgeoning community of users who are continually burning ETH via transaction fees.
Though technological difficulties have caused several years of delays, the Merge is finally expected on September 19th, according to developers. Even Hayes agrees that Ethereum miners are starting to worry about the cryptocurrency’s actuality. It is believed that a group of Chinese Ethereum miners are plotting a hard fork that maintains the use of proof of work, which the former CEO has contacted.
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