Cryptocurrency holders have been warned about the fall of the entire market this week

The cryptocurrency market is preparing for a crucial week, with several economic events on the horizon and the upcoming sale of digital assets by the controversial FTX exchange. Analysts have warned investors of an impending surge in crypto market volatility.

On Monday, the European Commission revised its economic growth forecasts for 2023 downward for the euro area and the 27 members of the European Union. Experts estimate that EU growth will reach only 0.8% in 2023, which is lower than the previous forecast of 1%. Forecasts for 2024 have also been adjusted and now stand at 1.4%, down from 1.7%.

The European Commission’s expectation that Germany, a major player in the bloc, will face a recession this year is also a major concern. Reacting to these forecasts, the value of bitcoin fell below $ 25,000, which increased the volatility of the crypto market.

Concerns about a further decline in the crypto market are related to the upcoming sale of the assets of the bankrupt FTX exchange and its subsidiaries. As it turned out, FTX currently owns almost $ 1.2 billion in SOL, the Solana network’s own token, as well as $ 560 million in BTC and $ 192 million in ETH. Last month, the crypto exchange applied to the court for permission to sell or transfer digital assets. A hearing on the matter is scheduled for September 13. It is possible that the court will grant the crypto exchange’s request on the same day, analysts said.

Another key event this week is the release of the core consumer price index (CPI) in the United States. The core consumer price index, which does not take into account fluctuations in food and energy prices, shows a projected decline year-on-year. When the CPI exceeds forecasts, it strengthens the US dollar, which leads to a bullish trend. On the other hand, unsatisfactory figures can weaken the dollar, leading to a bearish outlook.

In May of this year, bitcoin reacted to poor inflation figures in the UK by falling. The country’s core Consumer Price Index (CPI) came in at 6.8%, a record high since 1992. Experts had expected 6.2%.