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.
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.
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