On Monday morning, the global cryptocurrency market cap was trading marginally high at $1.06 trillion, almost unchanged in the last 24 hours. The total trading volume also increased to $72.92 billion.
Toward the end of the previous week, Bitcoin and the broader cryptocurrency market entered a strong rally, which took the total crypto market above $1 trillion all over again.
Additionally, the crypto market has been gearing up for the incoming increase in volatility ahead of the U.S. CPI inflation data that shall be released later this week. Because of this, the BTC price is up by 2%in the last 24 hours and is trading at $21,837 levels at the time of writing. Meanwhile, ETH is down by 1.13% and is trading at $1,735 levels.
However, market participants must brace themselves for rocky roads ahead. If higher-than-expected inflation reading is seen on September 13, i.e., Tuesday, it would cast shadows on the crypto market rally.
Additionally, it could directly impact the Fed’s interest-rate decision ahead of this month. For this month, most market experts believe that the Fed could go for a 75 basis points rate hike. A higher inflation reading could force the Fed to turn hawkish with a higher rate hike.
However, other analysts differ. They expect the Fed rate hikes to slow down in the coming months, which would be great news for Bitcoin.
Senior market analyst for City Index Ltd., Tony Sycamore, said “The market knows that it’s got a break from this unrelenting hawkish Fedspeak for a couple of weeks and that the pace of central bank rate hikes is likely to slow.”
The Ethereum Merge Is Just Around The Corner!
We are just three days away from the Ethereum Merge now, and the market is displaying mixed sentiments of excitement and anxiety regarding the event. At this point, even the smallest roadblocks in the upgrade event could be enough to slow down and damage the Ethereum price rally.
However, as of now, things have been sailing smoothly with the testnet developments over the previous weeks.
Head of digital asset strategy at Fundstrat Global Advisors LLC, Sean Farrell, told Bloomberg: “We continue to be long Ether into the Merge, using dips as buying opportunities.”
Sean also reiterated that Ether didn’t succumb to a “sell-the-news” drop after three earlier Ethereum upgrades.
The Current Status of The Crypto Markets
On Monday morning, Crypto tokens saw some profit booking after registering sharp gains over the weekend. However, Bitcoin continued to hold its gains and advanced towards the $22,000 mark.
Excluding Bitcoin, all other assets were seen to be trading in the red. Ethereum and Dogecoin were the top losers, down by about 2% each.
According to crypto analysts, the sudden surge in the Bitcoin market might lose momentum quickly.