The cryptocurrency market has been filled with a lot of volatility in the past months. Bitcoin price rose barely 1% to $20,373; The prices of Ethereum and other altcoins are still in the trash. Crypto community members and experts are anticipating an additional recession in October.
Amid the highs and lows of the market, the industry is set to record three significant events this week. The market may see more volatility in the coming months, considering the industry in the previous months.
The merger could affect the crypto market
This week comes the most intense upgrade in Ethereum history, known as consolidation. The merger is scheduled to take place on September 15.
During the merger, the Ethereum blockchain will transition from Proof of Work (POW) to Proof of Stake (POS). Ethereum mining Rewards It is approximately 13,000 ETH per day in the current POW system. After merging, your staking rewards will only be approximately 1,600 ETH per day.
according to Blog post By the Ethereum Foundation on the official website, the issuance of ETH will drop by 90% after the merger. ETH will be burning at an average gas price of 19 gwei, and 1,600 ETH will be burned per day, reducing net ETH inflation to zero.
The countdown to the time of the merger upgrade is one, but the inescapable fact is the increase in market volatility after the merger.
Mt.Gox Trustee sets deadline for $3 billion in BTC revenue
Defunct Japanese cryptocurrency exchange Nobuak Kobayashi, an agent for trustees of Mt Gox, has 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 the time, it was Mt. Gox is responsible for 70% of BTC transactions worldwide.
Three years later, the company recovered as much as 140,000 BTC, which was filed in a lawsuit. The payment process has been in progress since then. Mount Gox creditors are prohibited from transferring, assigning or disposing of their rehabilitation claims as security after September 15th.
Nobuak Kokayashi stated that they will no longer accept requests for transfer of claims after the deadline.
However, some claimants suspect that repayment may not occur. According to one of the creditors, the trustee was not yet ready for the supposed payment. He noted that the trustee has not yet collected KYC information.
There is speculation that the repayment of BTC holdings to claimants may increase market volatility after September 15th.
CPI release may increase market volatility
Expectations in the cryptocurrency market are high as CPI numbers are due this week. CPI is a consumer protection index used in the United States to measure inflation rates for goods but is not used for all products. As a result, the release of a positive CPI often increases market volatility.
Bitcoin price recovered to $2,0373, up nearly 1% in price over the past 24 hours. Chances are high that the positive CPI will add to the recent recovery of BTC and possibly other altcoins.
Featured image from Pixabay, chart from TradingView.com