Article written on 9 September 2022.
The cryptocurrency market has witnessed overall consolidation in prices after previous monthly pumps before the announcement of raising interest rates on 26th August 2022. As we enter the last quarter of the year, the world will witness significant market movement in the next week.
Historically, September marks the end of the third financial quarter, and current economic setups and news updates coming from Ethereum and U.S Feds will dictate the course of the market over the coming week from 12th September to 15th September.
As an investor and trader in the crypto market, here are some of my insights for the upcoming week that mark possible movements for the next week.
Warning: This is opinion and not financial investing advice. Please do your own research before making any investment decision.
Events happening in the next two weeks:
U.S Feds FOMC Meeting and Statement of CPI Report:
From the economic news, the current trend of the money market has indicated a mixed signal of bullish pressure in the daily time frame chart and a bearish indication in the near-weekly perspective.
Next week anticipates the U.S FOMC meeting on 20th September 2022 and CPI (Consumer Price Index) report coming around 13th September 2022, Tuesday.
From the last speech by U.S Fed Chairman Jerome Powell at the Jackson meeting held on 26th August 2022, an aggressive stance on the interest rate hike to contain inflationary pressure across the U.S.A is confirmed.
Interest rate hikes increase borrowing costs for investors resulting in investors and the market shifting their investments towards saving accounts, thus absorbing monetary liquidity and circulation.
For the Equity and Crypto market, interest rate hikes result in market crashes for stock and crypto coin prices. This time, the market might witness a short-term fall in the price over the next week or will stabilize and consolidate over the current price range.
On 15th September 2022, Thursday, Ethereum Blockchain will merge from its current Proof of Work mechanism to its newly updated Proof of Stake Blockchain.
This update will make Ethereum transactions much more scaleable, reducing Electricity Costs and increasing transaction speeds by ten times. This update is a win-win situation for Ethereum users as it will save transaction costs and overall Gas fees paid to miners for their computing power sources.
From an environmental perspective, reducing energy consumption for processing transactions will reduce the carbon footprint on Earth, making environmentalists happy.
However, Miners who used to earn on Proof of work Ethereum Blockchain will have their equipment worthless over Ethereum mining and hence will shift their mining model to other coins operating on the Proof of work mechanism.
Ethereum Classic (ERC), the previous version of the Ethereum stock blockchain, increased its value by 25% last month since the announcement of the merge date and has indicated a confirmatory signal of miners shifting their strategy towards other Proof of work blockchain coins.
Overall market trend anticipates Ethereum merge with users of Ethereum Coins and its services looking for healthy price pumps for the next quarter of year-end.
Overall charts for Bitcoin, Ethereum, and Altcoins show consolidation between the price band of 10%, and Altcoins have more volatility compared to Bitcoin.
From the overall sides of Economic interest rate hikes in the U.S market and the Ethereum merge, we may witness 10% volatility in the crypto market for Ethereum and other altcoins and 5% volatility in the overall equity market. The market may consolidate at the current levels or have a market correction over the next two weeks.
As we approach October end, the Crypto market and Equity market will witness bullish pressure with the Santa Claus rally of December approaching the year-end.
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