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Prepare for potential price swings in Bitcoin (BTC) and Ethereum (ETH) as eToro’s Simon Peters warns of upcoming influential news from the US and UK.

In the upcoming days, the prices of Bitcoin (BTC) and Ethereum (ETH) may fluctuate erratically, according to Simon Peters, a market analyst at eToro. In reality, significant information is anticipated to arrive, particularly from the US and UK, which could impact the cryptocurrency markets.

Interest rates: eToro’s analysis of the movements of Bitcoin and Ethereum

The most anticipated event is the Fed’s announcement of its most recent interest rate decision on Wednesday, September 20.

Since almost everyone believes that they won’t be raised this time, it is difficult to think that anything else could possibly happen.

Markets have already factored in the potential decision, as is frequently the case, but they have not yet been able to price in the remarks that Governor Powell would make at the press conference. His comments made following the rate decision announcement usually have more of an impact on the markets than the announcement itself.

The rate decision from the British central bank will also be announced, though it can be different.

Traditional markets currently appear to be moving in an unpredictable manner and may start to do so based on new data. The crypto markets might do the same.

Cryptocurrencies are risk-on assets that are sensitive to rate expectations; hence, any tightening in tone could tip market sentiment in a bad direction.

Analysis of Bitcoin and Ethereum by eToro

While we wait for this information, Bitcoin’s price has returned to the $27,000 mark, which is where it has actually been since March.

It crossed this threshold for the first time since the year’s beginning in April, and it did so again for the first time in June. Later, it went back below, only to return above again in August.

In other words, it has already seen two ups and downs before eventually returning to where it was on March 17.

For Ethereum, though, things are a little different because $1,800 is the price at which it has been fluctuating for several months. It just made it back to $1,650 with today’s surge, despite the percentage gain from yesterday is only marginally less than that of Bitcoin.

The truth is that Ethereum’s price increased less in June, when Bitcoin’s price increased as a result of announcement of BlackRock’s spot Bitcoin ETF, meaning that the August decrease for ETH began from a lower level.

whereas recovering from a slight decline at the start of the week, gains last week were incredibly modest, whereas advances today are more significant.

Visa is outperformed by Bitcoin

In addition to the more purely theoretical aspects, it is important to highlight that, according to Reflexivity Research, the annual volume of transactions on the Bitcoin network has for the first time ever topped that on the Visa network.

It is important to note, however, that BTC’s total on-chain transaction volume differs from Visa’s, which only counts card payments and does not take exchange technical movements into account.

Additionally, because very large transactions are frequently made, the average volume per transaction on the Bitcoin network is very high (almost $5,000). On the Visa network, the average volume per transaction is substantially lower because they are common payments.

This, however, gives a reasonable indication of the use of Bitcoin, which is frequently utilized for large transactions as opposed to daily payments.

It should be remembered that this has no direct impact on the price, in part because many of these transactions are just money transfers from one wallet to another rather than actual purchases and sales.

It should be noted that during the past ten years, the annual volume of transactions on the Bitcoin network has consistently climbed. If this trend keeps up in the years to come, the network’s transaction volume may even surpass that of the high-level settlement systems employed by the government.

Holesky issues with Ethereum

The new testnet Holesky for Ethereum, on the other hand, has encountered issues and was unable to deploy as a result of a technical issue.

However, it should be noted that this network is unneeded and is only used for testing, therefore there was no effect on the price of ETH.

It was planned for the new testnet to open on Friday, exactly one year after the Merge, however due to technical difficulties, the launch was postponed at the last minute.

The planned Dencun hard fork, which will introduce new capabilities to aid in the expansion of the Ethereum blockchain, will use Holesky as its testnet.

However, even in the event that Holesky has issues, the creators have guaranteed that there won’t be any barriers to Dencun’s official launch.

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