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The price of Bitcoin is currently experiencing a surge due to the potential approval of Spot Bitcoin ETF applications in January. However, this upward trend may be affected by key events happening this week.
In a recent post, The Kobeissi Letter highlighted two significant events that could impact Bitcoin’s price. First, the November CPI Inflation data is set to be released on December 12. This data is crucial as it influences the Federal Open Market Committee’s (FOMC) decision on interest rates. A dovish stance from the FOMC is seen as positive for the markets, including Bitcoin, while a hawkish stance has a negative impact.
Another important event is the FOMC meeting scheduled for December 12 and 13. The market will closely watch whether the FOMC chooses to raise interest rates. Federal Reserve Chairman Jerome Powell recently stated that talks of rate cuts are premature, indicating a possible maintenance of the current rates.
Additionally, the OPEC Monthly Report and November Producer Price Index (PPI) Inflation data will be released on December 13. These indicators also have a significant effect on Bitcoin’s price. The OPEC report provides insights into the world oil market, and an increase in oil prices could lead to higher inflation and interest rates, negatively impacting Bitcoin. The PPI inflation data is considered even more important than the CPI data, as it indirectly determines consumer prices.
Currently, Bitcoin is trading at around $42,100, experiencing a slight decrease of over 3%.