Bitcoin and the broader cryptocurrency market entered a strong rally last weekend taking the total crypto market once again above $1 trillion. BTC and ETH will close the previous week with double-digit weekly gains.
However, the crypto market has been bracing up for volatility ahead of the U.S. CPI inflation data coming this week. The BTC price is less than 1% up in the last 24 hours and is currently trading at $21,763 levels. Similarly, ETH is down 2.15% and trading at $1,725 levels.
Higher than expected inflation reading on Tuesday, September 13, could cast shadows on the crypto market rally. Furthermore, it could directly impact the Fed’s interest-rate decision ahead of this month. A majority of the market experts believe that the Fed could go for a 75 basis points rate hike this month.
However, a higher inflation reading could force the Fed to turn hawkish with a higher rate hike. But some market experts also believe that the speed of Fed rate hikes could be slowing in the coming months, and this could be a net positive for Bitcoin. Tony Sycamore, senior market analyst for City Index Ltd. said:
“The market knows that it’s got a break from this unrelenting 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 Merge, and the market has mixed sentiments of excitement and anxiety. Any bumps in the upgrade of Ethereum Merge would be enough to bring a slowdown in the ETH price rally.
However, things have been going pretty fine and smooth with the testnet developments over the last few weeks. Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, told Bloomberg:
“We continue to be long Ether into the Merge, using dips as buying opportunities”. He added that Ether didn’t succumb to a “sell-the-news” drop after three earlier Ethereum upgrades.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.