In the last months, volatility has plagued the crypto market. While Bitcoin prices have barely seen a 1 % increase to the $20.373 mark, Ethereum and other altcoins remain in the dump. Experts and cryptocommunity members predict that October will see a new slump.
Despite the volatility in the markets, this week’s events will be significant. The industry’s past events suggest that the market may experience greater volatility over the next few months.
Cryptomarket Could Be Affected by Merge
The merge, the largest upgrade of Ethereum in history, will take place this week. It is expected to occur around September 15.
The Ethereum blockchain will change from proof-of work (POW), to proof-of stake (POS) during the merger. In the current POW system, Ethereum mining rewards average 13,000 Ethereum per day. Following the merge, the daily staking rewards are approximately 1,600 ETH.
The official blog of the Ethereum Foundation states that ETH issuance will decrease by 90% following the merger. The average price for ETH is 19 gwei. 1,600 ETH per day will be burnt daily. This will reduce net ETH inflation down to zero.
The countdown until the merger upgrade is one. However, the inevitable fact of market volatility after the merge is complete is another.
Mt. The deadline for $3B BTC payouts is set by the Gox Trustee
Mt. Gox’s trustee Nobuak Kobayashi set a two-week deadline, a former client.
Mt. In 2011, the Mt. Mt. Gox controlled 70% of BTC operations around the world.
The company was able to recover up to 140,000 BTC after three years. This amount is still being held in court. Since then, the repayment process is ongoing. Mt. The Gox creditors cannot transfer, assign their rehabilitation claims to collateral or dispose of them after September 15.
Nobuak Kokokayashi indicated that they wouldn’t accept any claims transfers after the deadline.
Some claimants believe that repayment might not happen. One creditor said that the trustee has not yet been ready to pay the supposed payment. The trustee had not received KYC.
Some speculate that market volatility could be increased by the claimants repaying their BTC holdings after September 15.
CPI May Increase Market Volatility
The CPI figures this week will set the tone for high expectations in the cryptocurrency market. CPI is an index that measures inflation in commodities. It is used by the U.S. consumer protection department, but it isn’t used for every product. A positive CPI release can often increase market volatility.
Bitcoin prices have recovered to $20.373, which is a 1.1% rise in value in just 24 hours. There are good chances that the positive CPI will contribute to Bitcoin’s recent price recovery and other altcoins.
Featured Image from Pixabay. Chart by TradingView.com