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Three Events Set To Create High Impact On Crypto Today

Published 12/04/2023, 14:37
Updated 12/04/2023, 14:45
Three Events Set To Create High Impact On Crypto Today

  • The U.S. Bureau of Labor Statistics is set to release its crucial CPI data later today.
  • Ethereum’s widely anticipated Shanghai Capella upgrade will also go live today.
  • The Federal Open Market Committee will provide an update on upcoming interest rates and policies.

Today is a big day for stakeholders in the crypto industry. Ethereum’s long-awaited Shapella Fork is set to go live later today. The update is believed to have a significant impact on ETH’s price. Meanwhile, two key events from the world of traditional finance are also expected to influence the crypto outlook in the short term.

The first one is the Consumer Price Index (CPI) data which will be released by the United States Bureau of Labor Statistics in the next few hours. This data is a key indicator of changes in the prices of consumer goods and services, along with inflation trends. If the data indicates growth in inflation, investors tend to seek safe haven in alternative assets like gold and crypto.

CPI data often influence the price of leading cryptocurrencies including Bitcoin. BTC has emerged as an alternative safe haven asset. A significant drop in inflation may lead to a considerable decline in BTC’s price. When the last CPI data was released on March 14, 2023, BTC jumped nearly 5%.

The other traditional finance indicator that may influence the crypto market today is the meeting minutes released by the U.S. Federal Open Market Committee (FOMC). The FOMC’s data will provide insight into the Federal Reserve’s temperature regarding monetary policy and interest rates. A shift in stance policy-wise, such as higher interest rates, will affect the lending capacity of banks leading to a potential decline in BTC’s price.

Ethereum’s Shanghai Capella Upgrade, dubbed the Shapella Fork, is set to make waves. ETH has already dropped more than 2.5% today ahead of the upgrade. Investors are anticipating a decline in price following the unlocking of $34 billion worth of Ether.

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