These two major events could create major volatility in the crypto market this week

Bitcoin and the broader cryptocurrency market went into a strong rally last weekend, catching the total crypto market above $1 trillion. BTC and ETH will end last week with double-digit weekly gains.

However, the crypto market has braced for volatility ahead of the US CPI inflation data due this week. BTC price is up less than 1% in the last 24 hours and is currently trading at $21,763 levels. Similarly, ETH is down 2.15% and is trading at $1725 levels.

Higher-than-expected inflation reading on Tuesday, September 13 could cast shadows on the crypto market rally. Furthermore, it could directly affect the Fed’s interest rate decision before this month. A majority of market experts believe that the Fed could go for a rate hike of 75 basis points this month.

However, a higher inflation reading could force the Fed to become hawkish with a higher rate hike. But some market experts also believe that the pace of Fed rate hikes could slow in the coming months, and this could be a net positive for Bitcoin. Tony Sycamore, Senior Market Analyst for City Index Ltd. so:

“The market knows it has had a break from this relentlessly hawkish Fedspeak for a couple of weeks and that the pace of central bank rate hikes is likely to slow.”

Excitement around Ethereum Merge

We are just three days away from the Ethereum merger and the market has mixed feelings of excitement and anxiety. Any bumps in the Ethereum Merge upgrade will be enough to bring a slowdown in the ETH price rise.

However, things have been going pretty nice and smooth with the testnet development for the past few weeks. Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, told Bloomberg:

“We continue to be long Ether in the Merge, using dips as buying opportunities.” He added that Ether did not succumb to a “sell-the-news” drop after three previous Ethereum upgrades.

Bhushan is a FinTech enthusiast and has a keen flair for understanding the financial markets. His interest in economics and finance draws attention to the emerging markets of blockchain technology and cryptocurrency. He is continuously in a learning process and stays motivated by sharing his acquired knowledge. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.