- Two major upcoming events will significantly affect the price of Bitcoin.
- The US CPI report is scheduled to be released on December 13.
- Cathie Wood believed the FTX CEO didn’t like Bitcoin due to its decentralization.
Nicholas Merten, popular crypto analyst, believes that two macroeconomic reports could adversely affect Bitcoin prices. Merten said that Bitcoin’s price depended on two major events: the Consumer Price Index (CPI) report and the final Federal Reserve meeting of 2022.
The November 2022 CPI report is scheduled to be released on December 13, 2022. And the Federal Open Market Committee (FOMC) meeting will happen on December 14th 2022.
Merten said, “If the Federal Reserve sees a major upset in the CPI to the downside, meaning that inflation is still incredibly elevated month over month and that the annualized target that they are aiming to reach of 2% is still far away, then they may very well do another 75 basis point hike.”
Executive of a financial research analysis firm said, “US CPI data for October may influence decisions by the Federal Reserve on whether or not they will do the current rate hikes. Investors would get a whiff of what may come in December from the central bank. This week will decide if the Fed is going for a five percent terminal rate or above.”
In October, an inflation report showed that the prices rose by 7.7%. Recently the United States Treasury Secretary Janet Yellen emphasized the need to overcome inflation in the country. She stated: “over the next couple of years, I definitely think that inflation will come back down to levels closer to the normal levels we are accustomed to.” She added, “I think we see some good indications that inflation is poised to come down.”
According to CoinMarketCap, the cryptocurrency market closely followed the equity market this year. Investor confidence in cryptocurrency is at an all-time low, and the global economic outlook is not showing signs of moving beyond the covid-recovery mode.
Cathie Wood, the Ark Investment CEO, believes that the former FTX CEO didn’t like the largest cryptocurrency Bitcoin due to its decentralization and transparency. Recently Cathie predicted that the Bitcoin price would surge to $1 million (USD) despite FTX’s bankruptcy.
Cathie tweeted that “the Bitcoin blockchain didn’t skip a beat during the crisis caused by opaque centralized players. No wonder Sam Bankman Fried didn’t like Bitcoin: it is transparent and decentralized. He couldn’t control it.”
Source: https://www.thecoinrepublic.com/2022/12/12/two-upcoming-events-will-affect-bitcoin-price-analyst/