According to BitMEX co-founder and former CEO Arthur Hayes, the only chart that matters following the Merge is the net ETH emissions chart.
Co-founder and former CEO of BitMEX, one of the most well-known cryptocurrency derivatives exchanges, Arthur Hayes, has provided some commentary on Ethereum’s Merge.
In a recent tweet, Hayes stated that the net issuance of ETH after the Merge will be the only factor that matters (price-wise, it seems).
For those who are unaware, Ethereum’s switch from proof-of-work to proof-of-stake resulted in a significant change in the way the cryptocurrency is issued.
Some Twitter users disagreed with Hayes’ explanation, saying that the only chart that matters is the price chart.
Despite the Merge upgrade’s successful execution, Ethereum’s price has fallen by around 9% in the last 24 hours. The eagerly anticipated improvement turned out to be a “sell-the-news” occasion. Additionally, Thursday saw a resumption of falls in U.S. stocks, which reduced the value of Bitcoin and other cryptocurrencies. Although Ethereum has a strong argument for being bullish, it is unclear if it will defy the general gloomy trend. As was previously mentioned, Hayes anticipated that if the Merge is successful, the price of Ethereum will be able to recapture the $3,500 mark.
The head of global macro at Fidelity Investments, Jurrien Timmer, observed that Ethereum has not received favorable price-to-network ratio treatment (unlike Bitcoin). After the Merge, nevertheless, this may alter if Ethereum becomes more rare.
The previous CEO of BitMEX also asserted, albeit in a slightly different way, that the ongoing decline in ETH’s net emissions is what is most likely to usher in the next bull market.
It’s important to keep in mind that the adjustment in supply dynamics will probably take some time. The supply following the Merge has actually risen as of this writing.
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