Bitcoin investors are going to have a very busy week the next week after that. There are three things that need close attention from you.
It’s possible that this week may go down as one of the most pivotal in the whole history of the bitcoin market. If news and other market events become increasingly relevant, it’s possible that market volatility may rise as a result.
There are going to be three major occurrences very soon.
The Ethereum Merge
This week, Ethereum will begin its transition towards “the Merge,” also known as governance that is based on proof-of-stake, as the term is generally known. Because of this occurrence, tokenomics will undergo a transition, and the proof-of-work phase of the network’s development will reach its conclusion.
The Ethereum Foundation has announced that there will be modifications made to the current method of distributing ETH.
Mining Proof-of-Work blocks on the network now awards 13,000 ETH each day. After the Merge is complete, the payout for the stake will be 1,600 ETH every day. This results in a reduction in output of 90 percent.
The essay addresses these topics in particular.
After the merger, the rate of ETH inflation is either zero or very close to zero because the daily consumption of ETH is 1,600 and the price of a gallon of ETH is 16 gwei.
This event is commonly referred to as the “third halving” of Bitcoin. Many people believe that as a result of this, a large number of “sellers” will be forced to depart, which would quickly cause the price of ETH to drop.
No matter what happens, volatility will continue to increase. The Merge is scheduled to take place on September 15 at this time.
CPI in the US
The Consumer Price Index is the primary indicator of inflation for the majority of Americans; however, it does not cover all goods and services. It has a big effect on the market and contributes significantly to the uncertainty that it engenders.
Bitcoin’s value has been steadily increasing after the release of each CPI data. When the BLS statistics for July was revealed in August, the price of bitcoin went up by $1,000. This happens on a somewhat consistent basis.
As a direct response to inflationary pressures, the Federal Reserve Board of the United States is planning to raise interest rates later this month.
Mt. Gox Creditor Claim Deadline
The case involving Mt. Gox is the most important Bitcoin case that has ever occurred. At the tail end of August, Mt. Gox trustee Nobuaki Kobayashi communicated with creditors with the plan to rectify the situation.
The 15th of September is the cutoff date for retrieving any exchange money that was lost in 2014.
Despite the fact that this should not have much of an effect on the market, it may nonetheless make things more difficult.
It is anticipated that the market will be rather stable during the course of the following week.