Traders are waiting for inflation data and monitoring a seminal upgrade to Ethereum’s blockchain, events that could stir cryptocurrency volatility.
The higher-than-expected inflation on Tuesday may harden expectations for restrictive monetary policies that are anathema to crypto prices. Ethereum, the most important crypto network commercially, is also expected to undergo an upgrade later this week.
Bitcoin may benefit from a blackout period for Federal Reserve comments before the US central bank’s interest-rate decision later this month.
“The market knows that the Fed’s unrelenting hawkish speech will stop for a couple of weeks and the pace of rate hikes will slow,” he said.
Bitcoin, Ether, and the wider MVIS CryptoCompare Digital Assets 100 Index have suffered losses of over 50% in 2022 due to rising borrowing costs and blowups at crypto lenders and hedge funds.
Ether, the native token for the Ethereum network, is particularly in focus ahead of the latter’s transition to a more energy-efficient The Merge is a process on the blockchain. The crypto community is watching out for any confusion that could affect the network’s financial applications.