At the time of publication, bitcoin was trading for $46,220, not far from its 200-day moving average of just below $46,000. After Tuesday’s flash crash, the largest cryptocurrency has hovered around that level.
Alonzo upgrade takes place this Sunday
Sunday, September 12 is an important date in the cryptocurrency world. On this day, Cardano’s Alonzo Purple upgrade is scheduled to take place. This will enable smart contracts on the network. Cardano developer IOHK tweeted:
The Alonzo HFC event is the most significant upgrade yet. It will lay the most solid foundation for a new era of Smart Contracts on Cardano.
Alonzo will bring DeFi applications and exchanges into the ecosystem. As a result, Cardano will begin to compete with Solana, Ethereum, and other similar networks. After the upgrade, it should also be possible to create Non-Fungible Tokens (NFT) on the Cardano blockchain.
Not everyone is as excited about the upgrade as the developers. Some investors are worried that Cardano’s share price might fall after the upgrade, after posting a series of solid gains in recent weeks. So much so that Cardano ranked third in market capitalization. Financial analyst Robert Zach believes bitcoin price action is behind any move in Cardano:
Whether Cardano will rise due to the integration of smart contracts depends largely on Bitcoin’s ability to hold above the 200-day line. If the mother of all cryptocurrencies gives away this key support level, it doesn’t look good for Cardano in the short term either. After all, Bitcoin is considered a proxy for the entire crypto market. To regain upward momentum, it needs to at least recapture the lower edge of the ascending triangle at $2.90.
SEC postpones decision on VanEck’s bitcoin ETF.
Earlier this week, the U.S. Securities and Exchange Commission (SEC) announced it would postpone its decision on VanEck’s bitcoin ETF until November 14. The fund is designed as an actively managed exchange-traded fonds marketed with exposure to bitcoin investment products such as futures. The notice of extension states that the agency is setting a longer period of time in which to approve or disapprove the proposed rule change.
Approval equals another bull market
If the SEC approves the ETF, it could lead to another bitcoin bull market. Investors will not need to hold cryptocurrencies directly to invest in them.