After the release of the US Consumer Price Index (CPI), the overall crypto market has, yet again, turned bearish. The world’s first cryptocurrency, Bitcoin, has plunged below $21,000 and is trading at around $20,000 at the moment. Ethereum and other major assets are following the same path of decline.
At the time of publication, Bitcoin is selling at $20,304 and Ethereum at $1,612, with a loss of 9.4% and 6.35% respectively.
Amid such volatility, there are 3 more events that are yet to take place in the crypto space- Read on!
The highly anticipated ETH merger has been scheduled for September 15. The merge will transform Ethereum from a proof-of-work (PoW) to a proof-of-stake (PoS) mechanism and mining rewards will be nearly 1,600 ETH per day.
The official website claims that the issuance of ETH will plunge by 90% after the merge and ETH will be burnt at an average gas fee of 19 gwei. There are also speculations that, post the merge, the market will be hit with extreme volatility.
Mt.Gox Bitcoin Repayments
Mt.Gox, a cryptocurrency exchange platform, was hacked in 2011 and around 840,000 BTC were stolen from it. After three years, almost 140,000 BTC was recovered, but it is still in litigation.
The repayment of Bitcoin holdings to the applicants may raise the already volatile market after September 15.
Consumer Price Index (CPI)
The Consumer Price Index (CPI), which was released yesterday, has affected the price action of major cryptocurrencies. As per CPI data, inflation is now at 8.1%, which has pulled down the crypto prices.
This is expected to influence the Federal Reserve which will probably increase the interest rates in the coming days.