This week in pieces: Bitcoin and Ethereum sink on Freaky Fed Friday

This week in parts. Illustration by Mitchell Preffer for Decrypt.

The crypto market enjoyed an uneventful week amid this late summer slump, until Friday when the world’s leading cryptocurrency fell 4% in the space of 24 hours.

The price slide was triggered by remarks by Federal Reserve Chairman Jay Powell in Jackson Hole that the Fed continue to raise interest rates as long as it takes to fight inflation. The comments also rattled stocks, not just crypto.

Kicking off the weekend, all of the top 10 cryptocurrencies by market capitalization are posting a net loss over the past seven days, with the exception of Cardano (ADA), which is anticipating a hard fork coming next month. Bitcoin (BTC) down 5% last week, Ethereum (ETH) down 6%, Solana (SOL) down 10%, Dogecoin (DOGE) down 8%.

Ethereum proponents still have high hopes that the upcoming merger event will pump ETH. But this week the number of weekly ETH deposits sent for staking on the Beacon Chain hit a historic lowaccording to data from Dune analysis.

The Beacon Chain is an Ethereum ledger that coordinates the Ethereum staking network. It has been running in parallel with the Ethereum mainnet since its launch in 2020. When Ethereum completes its next major network overhaul next month, dubbed the “merger,” the mainnet will be merged with the Beacon Chain to create a proof of full attendance. (PoS) Ethereum network.

Once Ethereum transitions to a proof-of-stake consensus protocol, the network promises to be faster, cheaper, more scalable, and 99% greener.

The biggest crypto news of the week

The general market inertia this week was reflected in the news cycle; it’s been a pretty slow news week when it comes to crypto adoption or regulation.

The Australian Treasury said in a statement on Monday that it had a comprehensive plan to establish a crypto regulatory framework based on market research that she says will be better than “anywhere else in the world”.

Australia will begin this year with “token mapping” work, which it says will “help identify how crypto assets and related services should be regulated.” Once the preliminaries are completed, the Treasury says it will have a “timetable for changes in legislation and regulations”. The Australian Treasury also said it “soon” publish a public consultation document on token mapping.

On Tuesday, Coinbase CEO Brian Armstrong confessed CNBC that the company is still feel the effects of Crypto Winter. Coinbase licensed 18% of its workforce earlier this year and will cut costs in an effort to plan for a bear market that will last 12-18 months or more.

“We invest so much today in subscription and service revenue,” Armstrong said, because “I would like to get to a place where over 50% of our revenue comes from subscription and service.”

According to Armstrong, 18% of Coinbase’s current revenue comes from subscriptions and services. Coinbase currently offers Coinbase Clouda suite of blockchain product development services, and Coinbase Onea service that offers next-level customer support and other benefits.

Meanwhile, U.S. investors waiting for an SEC-approved Bitcoin exchange-traded fund (ETF) will have to wait. a little bit longer after the SEC again delayed its decision on VanEck’s Bitcoin ETF app by another 45 days. That means the agency has until Oct. 11 to “either approve, disapprove, or initiate a process to determine whether to disapprove, the proposed rule change.”

Finally, we got a update on the Ethereum merge date – and that’s potentially even earlier than previously expected. According According to a blog post published Wednesday by the Ethereum Foundation, the network overhaul will now be fully completed between September 10 and September 20. Ethereum core developers on Twitter were even more specific: on or about September 15th.

After eight years of waiting, it’s really around the corner.

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