Important events to watch next week
The cryptocurrency sector continues to struggle in the aftermath of the FTX collapse, with the flagship – Bitcoin (BTC) – making no significant moves in any direction, but this could change depending on these upcoming events next week.
As it happens, the new US Consumer Price Index (CPI) report is due on December 13, while the Federal Open Market Committee (FOMC) meeting, where the agency will discuss possible rate hikes, will end on December 14.
The results of these events can have a strong effect on the price of Bitcoin. Specifically, the CPI report, issued by the Bureau of Labor Statistics, will present the changes in inflation data or the recorded increase in consumer prices during the month of November.
Macroeconomic Effects on Bitcoin
Should the CPI data come in high, it could put further pressure on the price of Bitcoin, as it did in June, when the May CPI inflation numbers were the highest since November 1981 and Bitcoin erased $15 billion from its market cap in just ten. minutes.
But if it comes in lower than expected, as was the case the month before, Bitcoin may finally get the push it needs to rally. In fact, after the previous CPI data for October was low, Bitcoin responded by adding $15 billion to its market cap in just 15 minutes. A similar thing happened in August when the crypto market added over $50 billion in one hour after favorable CPI data.
Meanwhile, interest rate hikes by the Federal Reserve (Fed) could put pressure on the stock market, and considering the correlation between crypto and stocks, this could have an adverse effect on Bitcoin as well.
On the other hand, should the Fed slow its action on interest rates, it could make stocks more attractive as an investment and pressure crypto markets as well.
according to predictions by financial analyst Seth_finecould CPI data amount to a 7.4 point inflation increase, with a variance of 0.2, while he predicts the FOMC rate hike of 50 basis points (BPS) or 0.5%, which he believes is “okay for Bitcoin.”
Bitcoin price analysis
At press time, Bitcoin is trading at $16,846, showing a slight increase of 0.02% on the day, but still down 1.39% compared to the previous seven days, adding up to the fall of 13.16 % during the month.
With a market capitalization of $323.92 billion, the decentralized finance (DeFi) flagship remains the largest cryptocurrency by this indicator, according to CoinMarketCap data retrieved on December 8.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
