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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Price In Turmoil: Major Events That Could Affect Price This Week

Scott Matherson
Scott Matherson
1 year ago
3 mins read
Bitcoin Small

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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. 

Bitcoin price chart from Tradingview.com

BTC price recovers above $42,000 | Source: BTCUSD on Tradingview.com

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.

Featured image from The Conversation, chart from Tradingview.com
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Scott Matherson
Scott Matherson

Scott Matherson

Scott Matherson is a prominent crypto writer at NewsBTC with a knack for capturing the pulse of the market, covering pivotal shifts, technological advancements, and regulatory changes with precision. Having witnessed the evolving landscape of the crypto world firsthand, Scott is able to dissect complex crypto topics and present them in an accessible and engaging manner. Scott's dedication to clarity and accuracy has made him an indispensable asset, helping to demystify the complex world of cryptocurrency for countless readers.

Read more

Scott’s experience spans a number of industries outside of crypto including banking and investment. He has brought his vast experience from these industries into crypto, which allows him to understand even the most complex topics and break them down in a way that is easy for readers from all works of life to understand. Scott’s pieces have helped to break down cryptocurrency processes and how they work, as well as the underlying groundbreaking technology that makes them so important to everyday life.

With years of experience in the crypto market, Scott began to focus on his true passion: writing. During this time, Scott has been able to author countless influential pieces that have drawn in millions of readers and have shaped public opinion across various important topics. His repertoire spans hundreds of articles on various sectors in the crypto industry, including decentralized finance (DeFi), decentralized exchanges (DEXes), Staking, Liquid Staking, emerging technologies, and non-fungible tokens (NFTs), among others.

Scott’s influence is not just limited to the countless discussions that his publications have sparked but also as a consultant for major projects in the space. He has consulted on issues ranging from crypto regulations to new technology deployment. Scott’s expertise also spans community building and contributes to a number of causes to further the development of the crypto industry.

Scott is an advocate for sustainable practices within the crypto industry and has championed discussions around green blockchain solutions. His ability to keep in line with market trends has made his work a favorite among crypto investors.
In his personal life, Scott is an avid traveler and his exposure to the world and various way of life has helped him to understand how important technologies like the blockchain and cryptocurrencies are. This has been key in his understanding of its global impact, as well as his ability to connect socio-economic developments to technological trends around the globe like no one else.

Scott is known for his work in community education to help people understand crypto technology and how its existence impacts their lives. He is a well-respected figure in his community, known for his work in helping to enlighten and inspire the next generation as they channel their energies into pressing issues. His work is a testament to his dedication and commitment to education and innovation, as well as the promotion of ethical practices in the rapidly developing world of cryptocurrencies.

Scott stands steady in the frontlines of the crypto revolution and is committed to helping to shape a future that promotes the development of technology in an ethical manner that translates to the benefit of all in the society.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
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