Bitcoin and the broader cryptocurrency market gained momentum over the weekend. The total crypto market has once again entered a strong rally, pushing over $1 trillion. BTC and ETH closed the previous week with double-digit weekly gains. However, there are developments that will lead to volatility in the crypto space in the coming days. Here are the details… You can see the Bitcoin (BTC) price and detailed market data here.
Development that will affect Bitcoin price: US CPI inflation data
The crypto market is poised for volatility ahead of US CPI inflation data coming this week. BTC price is up a little over 1% in the last 24 hours. It is currently trading at $21,863. On the other hand, ETH is down 1.2 percent and is trading near the $1,740 level. Inflation data will be released on Tuesday, September 13. According to some, higher inflation data could cast a shadow on the crypto market rally. It can also directly influence the Fed’s interest rate decision. Most market experts believe the Fed could raise rates by 75 basis points this month.
However, higher inflation data could force the Fed to be tougher with a higher rate hike. However, some market experts believe that the pace of the Fed’s rate hikes may slow in the coming months. He thinks this could also be a net positive for Bitcoin. Tony Sycamore, senior market analyst at City Index Ltd. said:
The market knows it’s been taking a break from this relentless hawkish Fed speech for a few weeks, and the pace of central bank rate hikes is likely to slow.
Prospects for Ethereum Merge
Meanwhile, we are only three days away from Ethereum Merge, as we have reported as Kriptokoin.com. There are mixed feelings of excitement and anxiety in the market. Any blow in the Ethereum Merge upgrade would be enough to worry the market and bring a slowdown in the ETH price rally. That said, things are going pretty well and smoothly with the testnet developments over the past few weeks. Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, told Bloomberg:
We continue to be long in ETH due to Merge using the bottoms as buying opportunities. Ethereum has not succumbed to the “sell the news” thing after the previous three Ethereum upgrades.
At the time of writing, the price of Bitcoin has risen 9.6 percent in the past week. Bitcoin, which is the first with a market value of $ 419 billion, has a level of $ 22,000 that needs to be exceeded. On the other hand, Ethereum, the second largest crypto with a market capitalization of $ 209 billion, has not been able to exceed the $ 2,000 level for a while.
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