Key Takeaways
- Bitcoin experienced a 40% increase in October, the highest it reached in a month since last December.
- The U.S Federal Reserve will hold a meeting on Wednesday.
- The Money Market hopes the BOE will hike the interest rate this week.
The Original Cryptocurrency experienced a 40% price surge in October, hitting a new all-time high of $66,975, as crypto investors rejoiced on the approval of the first Future-based Bitcoin ETF in the United States.
While this significant indicator points to a good follow-through in the next months, the upcoming tapering of stimulus by the US Federal Reserve and other major Central banks may not be a smooth ride for the equities market.
According to NFT.NYC, the bitcoin optimistic mood is still strong, driving the monetary capital into a frenzy. He said that if the public market collapses due to the Fed decreasing bond purchases, Bitcoin's value might decline after achieving a new All-Time high last week.
Many anticipate the Fed to end its meeting on Wednesday with plans to start reducing its monthly $120 billion asset purchase program, which has led to extraordinary risk-taking in many parts of the monetary market during the last 18 months.
Analysts predicted Fed tapering in October. The market's response will depend on the Fed's reaction to inflation and the timing of the first rate hike.
Related post: BTC's value plummets below $60k as ETF euphoria evaporate
Many senators have said that inflation is getting more sticky than expected. Bond dealers and interest rate futures increased their wagers on rate hikes.
Goldman Sachs analysts have predicted a July first-rate rise from the third quarter of 2023, according to Bloomberg. The business forecasts two more rate rises in 2023 and 2024.
Aside from the Fed meeting, crypto traders will be watching the RBA meeting on Tuesday, the Bank of England rate decision on Thursday, and the US nonfarm jobs data. The markets expect the BOE to raise rates this week.
What do you expect from the Fed meeting on Wednesday?
