Representations of cryptocurrency Bitcoin are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
Dado Ruvic | Reuters
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But August CPI data showed that inflation rose month over month even as gas prices slipped. The U.S. dollar jumped, and stocks sold off sharply as Wall Street anticipates more aggressive interest rate hikes from the Federal Reserve.
As rates surge, investors sought to shed risky assets like cryptocurrencies.
Ether, the token that runs on Ethereum, also slipped more than 6% on Tuesday ahead of the much-anticipated Merge, expected to take place sometime between Sept. 13-15. During the merge, Ethereum will switch from a proof-of-work model to one that uses proof-of-stake.
The move will help make Ethereum more energy efficient and secure. It should also help draw new investors to the cryptocurrency, which has the second-largest market cap after bitcoin.
Still, it’s not clear when exactly the Merge will happen. It may also take more than the three days investors are currently watching.