The fact that the two most anticipated events of the week will both occur on Wednesday portends higher volatility.
The Bitcoin market has stagnated for a few days, but by the middle of the week, everything is anticipated to change.
This is due to two significant events that are about to occur: the release of the most recent CPI statistics for the US and the eagerly anticipated Shanghai/Shapella update for the Ethereum network.
CPI Statistics Coming Soon
The US CPI data has, at least temporarily, had a significant influence on the price performance of Bitcoin during the past year or so. In order to combat the record-breaking inflation, the Federal Reserve must decide whether to continue raising interest rates. This decision is influenced by the Consumer Price Index, which weighs a variety of factors and displays monthly changes in prices for United States citizens.
Due to its well-known volatility, Bitcoin is still regarded as a high-risk asset. Therefore, the Fed’s moves to maintain rising interest rates tend to be detrimental to the cryptocurrency’s price movements. Last year, at least, this was a regular occurrence.
Thus, it should come as no surprise that each month when the US releases the CPI statistics, Bitcoin reacts with dramatic price changes. On Wednesday, there will be a similar occurrence. Inflation rates have reportedly cooled down
Update on Ethereum Shanghai
The eagerly awaited Ethereum network update is the second significant occasion that is scheduled to occur on Wednesday. It was originally known as Shanghai but was later changed to Shapella since it now incorporates changes to the execution layer (Shanghai), the consensus layer (Capella), and the Engine API.
The community predicted that after years of waiting, a sizable amount of ETH would be released and made accessible for investors to dump on the market. To ensure network security, the money will nonetheless be released in stages. However, this will prevent any quick sell-offs.
Nonetheless, there may be price changes due to the significance of the update and the amount of released ETH (even though it may not be as much as initially anticipated).
It’s Important to note that, as it hit an all-time high prior to the update, the Ethereum ecosystem has seen a continuous increase in new members.
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