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Ether Tumbles Below $1.5K; Ethereum Merge May Ding Demand for Chips, but Semiconductor Stocks Could Still Be a Good Buy

Good morning. Here’s what’s happening:

Prices: Ether plummets in the hours after the Merge; bitcoin declines.

Insights: The Ethereum Merge could lessen the need for chips powering GPUs, but semiconductor stocks could still be a good buy.

Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis. And sign up for First Mover, our daily newsletter putting the latest moves in crypto markets in context.

Prices

● Bitcoin (BTC): $19,708 −2.7%

● Ether (ETH): $1,474 −9.8%

● CoinDesk Market Index (CMI): $981 −4.4%

● S&P 500 daily close: 3,901.35 −1.1%

● Gold: $1,671 per troy ounce −1.5%

● Ten-year Treasury yield daily close: 3.46% +0.05

Bitcoin, ether and gold prices are taken at approximately 4pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. Information about CoinDesk Indices can be found at coindesk.com/indices.

Ether Plummets Post-Merge; Bitcoin Sees Red as Well

By James Rubin

After holding steady in the hours immediately following the Ethereum Merge on Thursday, ether and other major cryptos tumbled.

Ether was recently trading below $1,500, a roughly 10% dive over the past 24 hours, and its largest, daily drop since late August. The second biggest cryptocurrency by market capitalization had topped $2,000 earlier that month largely on Merge euphoria. The technological overhaul that has changed the Ethereum blockchain to a more energy efficient proof-of-work protocol went seamlessly, and data from crypto futures markets on Thursday showed that many investors seemed to have closed out hedged positions in the ensuing hours.

The trend signaled that they were wrapping up trades they had made during the previous month or past few weeks to bet on possible outcomes of the event, including the possibility of a revolt by crypto miners wanting to continue operating in the PoW system.

Story continues

“We’ve seen that there was bullish positioning into the Merge, and as an industry we’re already looking for what’s next,”…

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