It’s about to be a hectic week in crypto, here’s what to watch out for
There have been a few weeks in crypto history that seem to pack as much of a punch as the one the market is heading into this week. From important meetings to the long-awaited Ethereum merger, this should be an interesting week for the market as a whole. This report shows a few events that investors should watch out for this week that could have significant impacts on the crypto market.
The Ethereum merger
The Ethereum merger comes first, given its importance to the network and the rest of the crypto market as a whole. This upgrade will have a significant impact on the performance of the Ethereum network in terms of scalability, but more importantly, it will affect the power consumption of the network.
On the estimated date, in the next few days, the Ethereum network will have transitioned from the proof-of-work mechanism to the proof-of-stake mechanism. The latter is superior in that it requires less energy to confirm transactions. Instead of using power-hungry machines to solve math problems and mine a block, it uses validators as a way to confirm and approve transactions.
Ethereum is not the first network to use it by far, but the merger will make it the largest network to adopt this mechanism. It is estimated that switching to proof-of-stake will reduce Ethereum’s power consumption by more than 99%. This is important because the energy consumption of cryptocurrencies has always been a major impediment to their adoption.
Market cap at $1.037 trillion | Source: Crypto Total Market Cap on TradingView.com
Other events that can affect cryptography
Although the Ethereum merger is undoubtedly the most important event of this week, it is not the only thing that can impact the market. Others include the FOMC and CPI data release. Both of these events have been significant in the past as they have had significant impacts on the market. Therefore, it is wise for investors to watch them.
The publication of CPI data is important as it reflects the current rate of inflation. Since inflation has been rising quite rapidly over the past couple of months, the Customer Price Index (CPI) has gained more interest and had a huge impact on investment habits in various financial spheres. . This data is scheduled to be released on September 13 at 8:00 a.m. EST exactly. As the Fed is expected to keep interest rates high due to high inflation, this could impact market prices.
As for the FOMC meeting, that is still about a week away and will take place after the Ethereum merger, but it is still important nonetheless. The FOMC is scheduled to meet again on September 20-21 and will present the results of Fed Chairman Powell’s vow to crush inflation.
A bonus event worth watching is the Cardano Vasil hard fork. This is another important event unfolding after the Ethereum merger that should fuel residual sentiment from the FOMC meeting results. Vasil’s hard fork will take place on September 22, a day after the FOMC meeting.
Featured image from World Today News, chart from TradingView.com