This Wednesday could be pivotal for Bitcoin and the broader cryptocurrency market.
The Federal Reserve will release its latest monetary policy meeting minutes, along with key economic data such as the Producer Price Index (PPI) and the unadjusted Consumer Price Index (CPI) for September, as well as initial jobless claims for the week ending October 5. These developments are expected to heighten market volatility.
The cryptocurrency market’s growing sensitivity to macroeconomic indicators is evident, particularly as investors view digital assets as a hedge against inflation.
A hawkish tone from the Fed may lead to further rate hikes, potentially pressuring Bitcoin as investors flock to safer assets. Conversely, if initial jobless claims indicate a weakening labor market, it could prompt the Fed to moderate its rate hikes, which might be positive for Bitcoin.
As these events approach, Bitcoin’s price may experience significant fluctuations. It’s nearing a crucial resistance level at $63,000; a breakout could lead to a move towards $65,000. However, falling below $60,000 could trigger panic selling, with $58,000 serving as the next support level. With October 9 approaching, any surprises in the Fed’s minutes or inflation data could result in notable price shifts for Bitcoin.
Two major developments are converging in July that could shape the future of Bitcoin in the United States—both tied to President Trump’s administration and its expanding crypto agenda.
Digital asset investment products recorded $1.04 billion in inflows last week, pushing total assets under management (AuM) to a record high of $188 billion, according to the latest report from CoinShares.
Strategy, the Bitcoin-centric firm formerly known as MicroStrategy, has temporarily paused its regular Bitcoin purchases.
Spanish banking giant BBVA has expanded its digital services by introducing in-app Bitcoin and Ethereum trading and custody for retail clients.