Crypto volatility may rise after the main important events going forward

The crypto market has been filled with so much volatility in recent months. Bitcoin price barely gained 1% to the $20,373 mark; Ethereum and other altcoins prices are still in the dump. Crypto community members and experts are predicting a further decline in October.

Amid the market’s highs and lows, the industry is set to record three important events this week. Perhaps the market will experience more volatility in the coming months, considering what has happened in the industry in the previous months.

Merger can affect the crypto market

This week sees the most intensive upgrade in Ethereum’s history, known as the Merger. The merger is planned to take place around September 15.

During the merger, the Ethereum blockchain will transition from proof-of-work (POW) to proof-of-stake (POS). Ethereum mining rewards are about 13,000 ETH per day in the current POW system. After the merge, the stake reward will only be about 1600 ETH per day.

According to a blog post by the Ethereum Foundation on the official website, ETH issuance will drop by 90% after the merger. The burning of ETH will have an average gas price of 19 gwei, and 1600 ETH will be burned daily, reducing net ETH inflation to zero.

Countdown to the time of the merger upgrade is one, but the inevitable fact is the increase in market volatility after the merger.

Mt. Gox Trustee Sets Deadline Towards $3B BTC Payout

The defunct Japanese cryptocurrency trading company Mt. Gox trustee Nobuak Kobayashi, a former client, set a two-week deadline.

Mt. Gox platform was hit by a hack in 2011 and around 840,000 BTC was stolen. At the time, Mt. Gox responsible for 70% of BTC operations worldwide.

After three years, the company recovered up to 140,000 BTC, which has been held in court. The repayment process has been ongoing since then. Mt. Gox creditors are prohibited from transferring, assigning as collateral or disposing of their rehabilitation claims after September 15th.

Nobuak Kokayashi stated that they would no longer accept claims transfer applications after the set date.

However, some claimants suspect that repayment may not take place. According to one of the creditors, the trustee is not yet ready for the assumed payment. He noted that the executor is yet to collect KYC.

There is speculation that the return of BTC holdings to claimants could increase market volatility after September 15.

CPI release can increase market volatility

Expectations in the crypto market are high as CPI numbers are set to arrive this week. The CPI is a consumer protection index used in the United States to measure inflation rates for commodities, but is not used for all products. As a result, a positive CPI release will often increase market volatility.

Bitcoin price has recovered to $20,373, about 1% increase in price in the last 24 hours. Chances are that a positive CPI will add to the recent recovery of BTC and possibly other altcoins.

Featured image from Pixabay, chart from TradingView.com