Crypto Volatility Might Rise After The Major Key Events Ahead
September 13 2022 - 11:46PM
NEWSBTC
The crypto market has been filled with so much volatility in the
past months. Bitcoin price barely gained a 1% increase to the
$20,373 mark; Ethereum and other altcoins prices are still in the
dump. Crypto community members and experts predict a further slump
come October. Amidst the market highs and lows, the industry is set
to record three significant events this week. Perhaps, the market
will experience more volatility in the coming months, considering
the happenings in the industry in the previous months. Related
Reading: Here’s Where Investors Expect Cardano (ADA) Price To Be At
The End Of September Merge Might Affect The Crypto Market This week
comes the most intensive upgrade in Ethereum history, known as the
merge. The merge is slated to take place around September 15.
During the merge, the Ethereum blockchain will transition from
proof-of-work (POW) to proof-of-stake (POS). Ethereum mining
rewards are approximately 13,000 ETH per day in the present POW
system. After the merge, the staking rewards will become only 1,600
ETH per day approximately. According to a blog post by the Ethereum
Foundation on the official website, ETH issuance will drop by 90%
after the merge. The burning of ETH will be at an average gas price
of 19 gwei, and 1,600 ETH will be burned daily, reducing net ETH
inflation to zero. Countdown to the time of the merge upgrade is
one, but the unavoidable fact is the increase in market volatility
post-merge. Mt. Gox Trustee Sets Deadline Against $3B BTC Payout
Defunct Japanese cryptocurrency trading company Mt. Gox’s trustee
Nobuak Kobayashi set a two-week deadline, a former client. The Mt.
Gox platform was affected by a hack in 2011, and about 840,000 BTC
were stolen. At that time, Mt. Gox was in charge of 70% of BTC
operations worldwide. After three years, the company recovered up
to 140,000 BTC, which has been held in litigation. The repayment
process has been in progress since then. Mt. Gox creditors are
prohibited from transferring, assigning their rehabilitation claims
as collateral, or disposing of them after September 15. Nobuak
Kokayashi stated that they would no longer accept applications for
transfer of claims after the set date. However, some claimants
suspect that the repayment may not occur. According to one of the
creditors, the trustee is yet to be ready for the supposed payout.
He noted that the trustee has not yet collected KYC. There are
speculations that the repayment of the BTC holdings to the
claimants may increase market volatility after September 15. CPI
Release May Increase Market Volatility Expectations in the crypto
market are high as the CPI numbers are set to come this week. CPI
is a consumer protection index used in the U.S to measure inflation
rates of commodities but is not used for all products. As a result,
a positive CPI release often increases market volatility. Related
Reading: Crypto Traders Bleed Heavily After Betting Against Market
Bitcoin price has recovered to $20,373, about a 1% increase in
price in the last 24 hours. Chances are high that a positive CPI
will add to the recent recovery of BTC and possibly other altcoins.
Featured image from Pixabay, chart from TradingView.com
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