September 13 is the decisive date for the cryptocurrency market and not only because of the Ethereum merger
A massive spike in volatility is what the majority of the cryptocurrency market is expecting, but something else besides consolidation is going to happen.
- US Consumer Price Index data
- merging ethereum
The Merge update is an important event that will definitely increase the volatility of the cryptocurrency market, and therefore, it should be taken into account by any crypto investor. But in addition to consolidation, another event may soon cause tensions in the crypto space.
US Consumer Price Index data
September 13th will be the day when CPI data will be released in public and help investors understand what is going on with inflation in the country today.
The last two times, inflation data has caused a massive spike in volatility in the market. The first time the figure was released was well above expectations, while the July data brought investors a pleasant surprise with moderate inflation.
On August 10, the market witnessed a sharp increase in trading volume and volatility as Bitcoin reached a local high of $25,000 after that. But despite the short-term euphoria, the markets were unable to enter a full recovery mode and fell back soon after.
With the Ethereum merger happening in less than 10 days, almost every industry expert believes in the upcoming volatility, liquidity, and potential security issues that the merger might cause. In one of our recent articles on consolidation, we mentioned how a core update could cause a liquidity crunch in the DeFi and Layer 2 sector.
Some users may want to maximize their profits by borrowing ETH from platforms such as AAVE or Compound, while others withdraw ETH from liquidity contracts, leading to a potential liquidity crunch before the network is captured.
At press time, ETH is still relatively quiet, with a price increase of just 3% in the last 24 hours. The decentralized platform has not reported any problems yet.