5 Things to Know in Crypto Today: ETH Breaches $1.9K on Goerli Merge Success, BTC Eyes $25K

Key Points 

• Cryptocurrency markets have been surging since soft US CPI data on Wednesday eased Fed tightening fears.  
• Ethereum Merge optimism has also been helping (and supporting ETH) after the successful merge of the Goerli testnet.  
• Coinbase is under SEC investigation over its staking and yield-generation products, not just its token listings, the company said.  

Crypto Markets Surge as Soft US CPI Eases Fed Tightening Fear/Amid Ethereum Merge Optimism 

It’s been a bullish last 24 hours in cryptocurrency markets. Prices got a boost across the board on Wednesday in wake of softer-than-expected US inflation figures for July, which were a welcome validation of hopes that US inflation has now peaked and eased concerns about excessively aggressive monetary tightening from the US Federal Reserve. Cryptocurrencies then got further support during Thursday’s Asia Pacific session after Ethereum developers successfully implemented the Merge on Ethereum’s Goerli testnet, bringing the Mainnet’s transition to PoS one step closer.  

Bitcoin, up around 7% in the last 24 hours according to CoinMarketCap, hit fresh highs since mid-June at $24,750 on Thursday. At current levels just under $24,500, it trades around 2% higher on the day as bulls continue to eye a test resistance at $25,400.  

Ethereum, meanwhile, is unsurprisingly an out-performer amid “Merge” optimism. The cryptocurrency was last up about 11.5% in the last 24 hours. ETH/USD hit its highest levels since 1 June on Thursday just under $1,920, though has since dipped back to the $1,880s. Altcoins are performing well, with XRP, BNB and ADA all 3-5% higher in the past 24 hours, while DOT and SOL are 10% and 13% higher.

Ethereum Goerli Testnet Merge Successfully Goes Live 

On Thursday, Ethereum developers successfully implemented their third and final trail run of the so-called “Merge” on a major Ethereum public testnet. At around 0145GMT, the Goerli testnet, formerly a Proof-of-Work (PoW) blockchain, made the transition to Proof-of-Stake (PoS) as it merged with the Bellatrix beacon chain. The successful merge opens the door to a merge of the currently PoW Ethereum Mainnet with the PoS Beacon Chain on 19 September. 

The Goerli testnet has been successfully merged and is now a full Proof of Stake chain.

Next up is (finally) the Ethereum mainnet!!

The Merge is coming 🐼

— sassal.eth 🦇🔊🐼 (@sassal0x) August 11, 2022

For more on what the merge means for the Ethereum blockchain and ETH, click here.  

US Inflation Surprises to the Downside 

US Consumer Price Index data for July surprised to the downside and prompted traders to pare back on aggressive Fed tightening bets. Headline inflation came in at 0.0% MoM and 8.5% YoY, below expectations for 0.2% and 8.7%, whilst core inflation came in at 0.3% and 5.9%, below expectations for 0.5% and 6.1%. Much of the decline in headline prices owed itself to a 20% decline in average gasoline prices in the US in July versus June. 

Markets interpreted the data as reducing the need for the Fed to implement a third successive 75 bps rate hike in September. According to the CME’s FedWatch Tool, money markets were last pricing a 62.5% chance that the Fed instead goes with a smaller 50 bps rate hike in September versus 32% one day ago. Analysts were keen to point out that these expectations could easily shift, given that August jobs and CPI data will both be released prior to the Fed’s September confab.   

NEAR Leaps on News of Future Coinbase Listing 

NEAR, the token that powers the NEAR Protocol’s blockchain, was in focus on Wednesday after the largest US-based cryptocurrency exchange Coinbase said in a blog post it plans to list the token soon. NEAR/USD jumped 10% on Wednesday to briefly surpass $6 per token for the first time since late May but has since succumbed to profit-taking and fallen back to the $5.80 area. Bulls will nonetheless still be eyeing a test of the next major area of resistance around $6.50 as the broad cryptocurrency rally continues.  

Asset added to the roadmap today: Near Protocol (NEAR)https://t.co/zu1IBdrD7X

— Coinbase Assets (@CoinbaseAssets) August 10, 2022

Coinbase Under SEC Investigation Over More Than Just Token Listings 

Coinbase Global told investors this week that it is under US Securities & Exchange Commission (SEC) investigation over the staking and yield-generation products that it offers to investors, as well as over its cryptocurrency token listings.  

In its latest quarterly report, Coinbase said it had “received investigative subpoenas and requests from the SEC for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products”.