The flagship cryptocurrency, Bitcoin, is currently flying high on the back of potential approval of the pending Spot Bitcoin ETF applications in January. However, this upward trend could cool off as this prominent crypto analysis platform outlined key events that are set to happen this week.
“Huge Week Ahead” For Bitcoin
In a post shared on their X (formerly Twitter) platform, The Kobeissi Letter noted that the November CPI Inflation data is coming in this week. Specifically, it is set to be released on December 12. Meanwhile, The Federal Open Market Committee (FOMC) is scheduled to meet on December 12 and 13.
These two events are significant for Bitcoin’s price. The CPI inflation data is usually a factor in the FOMC’s decision on whether or not to increase interest rates in its fight against inflation. A dovish stance is seen as bullish for the markets (including Bitcoin), while a hawkish one usually affects the market negatively.
Therefore, all eyes will be on the inflation data and whether or not the FOMC will choose to raise the interest rates. The Federal Reserve Chairman Jerome Powell had recently stated that talks about rate cuts are still “premature,” although he admitted that “inflation is moving in the right direction.”
The financial markets reacted positively to Powell’s remarks, with many experts of the opinion that the Feds are raising the interest rates and would possibly stick to the current rates between the range of 5.25 to 5.50 percent. If that happens, there is a high chance that Bitcoin’s price will react positively to it.
Other Inflation Indicators To Watch Out For
The OPEC Monthly Report and November Producer Price Index (PPI) Inflation data are also set to be released on December 13. These two events are also known to have a significant effect on Bitcoin’s price as they are key inflation indicators.
For one, the OPEC monthly report contains issues affecting the world oil market. It will also show whether there has been a significant increase in oil prices and the key supply and demand metric. An increase in oil prices could be bad news for Bitcoin as this would mean that inflation is still on the high which could lead to higher interest rates.
The PPI inflation data is also key. Some even argue that it is more important than the CPI inflation data since the producers indirectly determine how much consumers pay for these goods. An increase in the PPI inflation data also suggests that inflation is on the high. That would also be a factor when the Feds decide whether to raise interest rates or not.
At the time of writing, Bitcoin is trading at around $42,100, down by over 3% according to data from CoinMarketCap.
