2023 has seen a notable upsurge in the price of bitcoin, with a price increase of nearly 130% since the start of the year. A number of anticipated events, including the Federal Open Market Committee (FOMC) meeting on December 13 and the US inflation rate announcement on December 12, may have an impact on future price movements.
The Federal Reserve's decision on interest rates is anticipated to have an impact on the value of Bitcoin. It could decline or remain unchanged. Interest rate reductions may promote Bitcoin investment. The price of Bitcoin has been impacted by prior pronouncements from the Fed regarding interest rates. For example, this summer, after the organisation hiked interest rates by 25 basis points, the asset fell below $30,000. Conversely, low interest rates can promote borrowing and investing, which might raise people's interest in riskier assets like Bitcoin.
The US inflation rate will probably be the basis for the Fed's interest rate decision. Even if inflation has decreased recently, it is still important to keep an eye on it. The US Bureau of Labour Statistics will release a report on the changes in the inflation rate over the previous month on December 12, which market investors should take note of.
The possible US approval of a spot Bitcoin ETF is another important factor affecting the price of Bitcoin. Financial firms that have filed to introduce a spot Bitcoin ETF in the nation include BlackRock, Fidelity, and Invesco. The largest asset manager in the world, BlackRock, has an amazing track record of having the SEC approve 575 of its 576 ETF applications. Bitcoin bulls have therefore welcomed its arrival into the cryptocurrency market with great enthusiasm. An approval from the US securities regulator, which many experts and even AI-powered language models have speculated could happen by the end of 2023, could lead to a sharp rise in the value of Bitcoin.
