Cryptocurrency

“There’s a Higher Potential For A Sell-The-News Event Going Into The Merge,” Top Analyst Says

Lots of speculation around Ethereum (ETH) continues to spread as the  Merge upgrade closes by. A top crypto analyst and televangelist shared his thoughts, warning that the fast-approaching Ethereum Merge is riskier than traders realize.

Brian Kelly, a top crypto analyst at CNBC Television and contributor on the TV’s Fast Money show, noted in a discussion session that Bitcoin (BTC) isn’t a tech stock but rather a digital gold. According to him, Bitcoin is highly needed especially when a country destroys its currency as some governments are currently doing. 

According to the televangelist, “Ethereum (ETH) on the other hand can somewhat be thought of as a tech stock because it is going to disrupt a lot of what tech stocks are doing today and to the extent that it takes daily active users away from places like Twitter, Facebook, and Google.”

“I do think that there’s something to be said about Ethereum (ETH) being a tech stock,” Brian Kelly added. While Bitcoin (BTC) recently fell below the $20,000 mark, he mentioned that crypto has not yet bottomed out. 

Read Also: Ethereum (ETH) Miners Recorded $733 Million in Revenue in August 2022

Ethereum (ETH) Merge Impact Weighed

The much-anticipated Merge upgrade is around the corner as it will be happening this September 2022. Investors could be taking advantage of the market downturn to accumulate more ether tokens with the hope that it would record a massive price rally after the Merge.

In the recent episode of CNBC’s Fast Money show, Brian Kelly shared a few possible outcomes regarding the Merge upgrade that seeks to transition Ethereum (ETH) to the proof-of-stake (PoS) consensus algorithm. He stressed that there is a higher potential for a sell-the-news circumstance to play out going into the merge. 

Read Also: Ethereum’s Vitalik Buterin To Release a Book Titled “Proof of Stake” in September

In his words, “I think it’s probably more ‘sell the news,’ which is maybe not that intuitive because in crypto you generally want to buy the news. But everybody has been buying Ethereum because they’re going into this merge and now you’re going to get a so-called yield.”

“Just so you know, it’s not really a yield. You’re just getting your inflation rewards back, so it’s kind of offsetting the inflation in the currency. It’s not really a yield,” he added

In addition, the CNBC contributor remarked that a technical glitch could occur in the process of executing the major upgrade. “I think that there’s more risk to the Ethereum merge than people are giving credit for,” he stated. 

Meanwhile, ETH mining will be disabled on the largest smart contract platform putting an end to miners’ top financial opportunity after the Merge.


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Ndianabasi Tom

Ndianabasi Tom joined the crypto and blockchain industry in late 2018. He is an all-rounded crypto journalist and content writer. At TimesTabloid, he covers the industry's latest news, developments, and other educational content. He is a graduate of Petroleum Engineering.

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