Cryptocurrency traders are anticipating the new move that will accompany Ethereum, which is the Shapella hard fork, and the extent to which it will cause volatility in the prices of cryptocurrencies.
Crypto experts also look at the auditors and market oversight as well as the release of US Consumer Price Index (CPI) data for March.
As the price of Bitcoin and cryptocurrencies is expected to rise in connection with the goods and services market.
Ether traders are ready for the volatility of the cryptocurrency price
Investors await the release of the Shapella hard fork that mixes the Shanghai upgrade and the Capella upgrade on April 12th.
The upgrade will enable validators who have placed ETH on the network's consensus layer to secure it and keep their funds.
Any trader can lock 32 ETH in a smart contract to confirm and issue transactions, especially after switching from proof-of-work to proof-of-stake.
Thus earning interest of up to 5% as a reward for this work.
On the other hand, ETH price was stable during the day around the $1870 price range.
This indicates that traders are ready for selling pressure which in turn affects the ether and altcoin markets.
According to a report by K33 Research, traders can withdraw 1.1 million ETH in rewards.
The rewards can be withdrawn immediately after the promotion and liquidated through the central exchange, and the full withdrawal takes several months.
The impact of lenders' withdrawals on cryptocurrency prices
In a related context, bankrupt lender Celsius may withdraw about 158,000 stacked ether.
In order to pay off and recover the creditors’ money, these withdrawals amounted to $ 2.4 billion in selling pressure.
That is, this number represents a quarter of the trading volume of ETH over the past day.
Some digital currencies, such as Dogecoin, ADA, BNB, and MATIC, have declined by more than 3%.
The impact of economic data on currency rates
It is also expected that the decrease in the consumer price index within the United States will lead to a rise in the price of altcoins.
As the data causes the price of Bitcoin to fluctuate, investors are watching the impact of the Fed's decisions on monetary policy.
Economists expect the annual consumer price index in the US to be 5.2% for the month of March.
This is down 0.8% from 6% in February, and the inflation rate is likely to reach on a monthly basis half of last month at 0.2%.
If the predictions are correct, Bitcoin's profits may outpace the Nasdaq and gold.
On April 10, Bitcoin rose by 4.5%, coinciding with the Nasdaq and gold falling by 0.1% and 0.9%.
Bitcoin's 7-day daily trading volume reached nearly $2.8 billion on April 10, the lowest in a year.
Stay tuned for Federal Reserve decisions and their impact on the currency
Traders are awaiting the Fed's expected decisions to temporarily reduce interest rates, and thus the volume of derivatives may push the currency to more than $30,000.
The relationship between traditional finance and cryptocurrency may decline, but positive CPI news may make the former outperform the crypto market.
Also, the correlation between Bitcoin and altcoins can influence altcoin prices.
