The crypto market has been filled with so much volatility in the past months. Bitcoin price barely rose 1% to $20,373; The prices of Ethereum and other altcoins are still in the dumps. Members of the crypto community and experts predict further declines in October.
Amid the ups and downs of the market, the industry will see three significant events this week. Perhaps the market will experience more volatility in the coming months, given the developments in the industry in the previous months.
The merger could affect the crypto market
This week sees the most intense upgrade in Ethereum history, known as the merge. The merger is scheduled 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 awards are roughly 13,000 ETH per day in the current captive system. After the merge, the investment rewards will be approximately only 1,600 ETH per day.
According to a blog post by the Ethereum Foundation on its official website, ETH issuance will drop by 90% after the merger. ETH burning will be at an average gas price of 19 gwei, and 1,600 ETH will be burned per day, reducing net ETH inflation to zero.
Counting down to the time of the merger upgrade is one thing, but the inevitable fact is the increase in market volatility after the merger.
Mt. Gox trustee sets deadline for $3 billion BTC payout
Trustee of Defunct Japanese Cryptocurrency Trading Company Mt. Goxa Nobuak Kobayashi set a deadline of two weeks, former client.
The platform of Mt. Gox was hacked in 2011 and around 840,000 BTC was stolen. At that time, Mt. Gox was responsible for 70% of BTC operations worldwide.
After three years, the company has recovered up to 140,000 BTC, which was litigated. Since then, the repayment process is ongoing. Creditors of Mt.Gox are prohibited from transferring, assigning their recovery claims as collateral or disposing of them after September 15th.
Nobuak Kokayashi has stated that he will no longer accept claims transfer requests after a certain date.
However, some claimants suspect that repayment may not occur. According to one of the creditors, the bankruptcy trustee has yet to be ready for the alleged payment. He noted that the manager has not charged KYC yet.
There is speculation that the repayment of BTC stakes to claimants could increase market volatility after September 15th.
The release of the CPI can increase market volatility
Expectations in the crypto market are high as CPI numbers are due this week. The CPI is a consumer protection index used in the US to measure the rate of commodity inflation, but it is not used for all products. As a result, a positive CPI release often increases market volatility.
The price of Bitcoin recovered to $20,373, a price increase of about 1% in the last 24 hours. Chances are good that a positive CPI will contribute to the recent recovery of BTC and possibly other altcoins.
Featured image from Pixabay, chart from TradingView.com