The crypto market has been full of volatility in the past months. Bitcoin price gained barely a 1% increase to $20,373 mark; The prices of Ethereum and other altcoins are still in the garbage. Members of the crypto community and experts are predicting a further fall in October.
Between the market’s highs and lows, the industry is set to record three significant events this week. Perhaps, the market will be more volatile in the coming months, taking into account the events that have happened in the industry in the past months.
Consolidation can hurt the Crypto market.
This week comes the most intensive update in Ethereum’s history, known as the Merger. The merger is said to take place around September 15.
During the merger, the Ethereum blockchain will transition from Proof of Work (POW) to Proof of Stake (POS). Ethereum mining rewards are about 13,000 ETH per day in the current POW system. After the merger, stock awards will be only approximately 1,600 ETH.
According to a blog post by the Ethereum Foundation on its official website, the supply of ETH will decrease by 90% after the merger. ETH burning will be at an average price of 19 GUY, and 1,600 ETH will be burned every day, which will reduce the net ETH inflation to zero.
Calculating the timing of merger reforms is one thing, but an inescapable reality is increased market volatility post-merger.
Gox trustee set deadline on $3B BTC payout.
Nobuak Kobayashi, a former client of defunct Japanese cryptocurrency trading company MT Gox, has set a two-week deadline.
The Mt. Gox platform was affected by a hack in 2011, and about 840,000 BTC was stolen. At that time, Mt. Gox was responsible for 70% of BTC transactions worldwide.
Three years later, the company was held in litigation for up to 140,000 BTC. Since then, the payment process is in progress. The Mt. Gox creditors are prohibited from relocating, assigning or removing their restructuring claims as collateral after September 15.
Nobuak Kokayashi said they will not accept applications to transfer claims after the deadline.
However, some claimants suspect the payment may not be forthcoming. According to one of the creditors, the trustee is not yet ready for the proposed payment. He pointed out that the trustee has not yet collected KYC.
There are speculations that the return of BTC holdings to investors after September 15 could increase market volatility.
CPI release may increase market volatility.
Expectations are high in the crypto market as CPI numbers are due this week. The CPI is a consumer protection index used to measure commodity price inflation in the US, but it is not used for all products. As a result, a positive CPI release often increases market volatility.
Bitcoin price is back to $20,373, which was a 1% price increase in the last 24 hours. A positive CPI is likely to add to the recovery of BTC and possibly other altcoins soon.
Featured image from Pixabay, chart from TradingView.com