Surge in crypto market volatility with major macro events ahead<br><br><br>

volatility of Crypto

Surge in crypto market volatility with major macro events ahead

The overall crypto market has yet again turned bearish post the release of the US Consumer Price Index (CPI). Bitcoin, the first cryptocurrency, has slipped to around $20,000 from $21,000. Ethereum and other major digital assets have witnessed similar declining trends.

In the morning the selling price of Bitcoin stands at $20,304 and Ethereum stands at $1,612 with a loss of 9.4% and 6.35% respectively. Amid such volatility, three major events yet must take place in the crypto space.

Ethereum Merge:

A very highly anticipated ETH Merge has been scheduled for September 15. With the merge, Ethereum will transform from PoW (Proof of Work) to PoS (Proof of Stake) mechanism followed by nearly 1,600 mining reward ETH per day. According to the official website, post-merge Ethereum will tend to witness a plunge of 90% and will be burnt at an average gas fee of 19 gwei. It is further speculated post the merged market will hit extreme volatility.

Mt. Gox Bitcoin Repayment

In 2011, Mt. Gox was hacked and around 840,000 BTC were stolen from it. Approximately 140,000 BTC were recovered after three years and is still in litigation. But the possible repayment of Bitcoin holdings may increase the market after 15th September.


Consumer Price Index

The release of CPI(Consumer Price Index), has affected the price of the major cryptocurrencies. The rate of inflation stands at 8.1% which has pulled down the prices of crypto, as per CPI data. This may possibly affect the Federal Reserve which again increases the likelihood of an increment in the interest rate in the coming days.