Week's Crypto Highlights: CPI Data Impact, SEC Bitcoin ETF Delay And FTX's $3.4B Liquidation

The U.S. CPI and PPI inflation figures set for release this week could be a defining moment for the crypto industry. With interest rate hikes forecasted to be paused, Bitcoin BTC/USD and Ethereum ETH/USD prices are seen rebounding from the bottom. This is seen to potentially have a bullish impact on crypto prices for the rest of the year.

The CPI data is slated for a Wednesday release, while PPI will be out on Thursday. CPI is anticipated to come in at 3.6%, higher than July's level of 3.2% while Core CPI YoY is expected at 4.3% against 4.7% in July. Core PPI MoM data is expected at 0.2%.

At the time of writing, Bitcoin is trading 2.6% lower at midday, having fallen 14.5% over the past month. Ether prices on the other hand are down 3.5%, and 15.5% lower in the past month.

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Meanwhile, the crypto market has seen a flurry of developments.

• The U.S. SEC has delayed all seven Spot Bitcoin ETFs applications as it requires more time to review the proposed rule changes, which play a vital role in protecting investors from potential fraud.

Read More: SEC To Approve Multiple Spot Bitcoin ETFs In October? JPMorgan Analyst Bets 'Yes'

• Crypto trading platform, FTX, is looking to liquidate $3.4 billion in recovered crypto assets. It is expected to receive Delaware Bankruptcy Court approval on Sep.13, 2023, for the same. This will increase selling pressure, thereby potentially attracting market manipulation attempts by market makers. Upon approval, FTX will upload up to $100 million of crypto tokens per week, which could be increased to $200 million for individual assets. 
• Also, several cryptocurrency projects will release a certain number of their tokens in the market, which may impact prices based on supply and demand dynamics if the number of tokens released is significantly high. Aptos, TokenUnlocks, Sweatcoin are among the few names which may unlock tokens during the week.
• The liquid staking sector has almost returned to an all-time high. DefiLlama data shows that the value of assets locked in liquid staking services surged 292% to $20 billion from a June 2022 low when crypto prices were at their lowest. Liquid staking allows users to access liquidity while also staking their tokens. 

Also Read: Exploring Ethereum Staking's Surge Amidst DeFi's Value Decline - BitPlus Capital Reports

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