Incoming volatility? The most important things you should see in Krypto this week
Incoming volatility? The most important things you should see in Krypto this week
The cryptocurrency market has stalled in the past few days, but all of this will probably change until the middle of the week.
This is due to two remarkable events that are imminent-the announcement of the latest CPI data in the United States and the long-awaited Shanghai/Shapella update for the Ethereum network.
VPI data on the horizon
Last year or so the US CPI data influenced the price development of Bitcoin at least at least at short notice. The consumer price index, which takes into account various factors and displays the price development for US citizens every month, influences the Fed's monetary policy as to whether interest rates will be increased in order to combat record inflation.
If you consider that BTC with its notorious volatility is still considered a risky system, the measures of the Fed to further increase interest rates tend to impair the price movements of the cryptocurrency. At least that was the case last year.
Therefore, it is no wonder that Bitcoin reacts with immediate price fluctuations every month when the United States announces the latest CPI data. The next event will come on Wednesday. The general expectations indicate that the inflation rates have calmed down and could be less than 6 % for the month.
US Congress
Ethereum Shanghai Update
The other big event that is to take place again on Wednesday is the eager ethereum network update, which is eagerly awaited. It was originally called Shanghai, but was later changed in Shapella, since there are now changes in the execution layer (Shanghai), the consensus layer (capella) and the engine api.
The Community speculated that a considerable part of the ETH is activated and investors are made available to bring them onto the market, which will bring about the price after years of waiting. However, the funds are released in phases, which is carried out for network security reasons, but also does not allow immediate sale.
Nevertheless, the importance of the update and the number of unlocked ETH (even not as many as expected before) could lead to price fluctuations.
It is worth noting that the Ethereum ecosystem has a constant increase in new participants, as it reached an all-time high before the update.
📈 Rel = "Nofollow noopener" Target = "_ blank" href = "https://twitter.com/search?q=%24eth&src=ctag&ref_src=twsrc%5etfw" Data-Wpel-Link = "External"> $ eth 97.052.907 reached
Metric Show: https://t.co/Bes1Mtigaz pic.twitter.com/2lxw7gtnul
-Glassnode warnings (@glassnodealers) 8. April 2023
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