Bitcoin Price Prediction: Market Reacts to FOMC Meeting, El Salvador Bond & Google’s New Ad Policy
Publikováno: 12.12.2023
In the dynamic world of cryptocurrency, Bitcoin (BTC) is experiencing subtle yet noticeable fluctuations, trading at $41,457 with over 0.50% rise as of Tuesday. Market sentiments are heavily influenced by key economic events and policy changes. As the Federal Open Market Committee (FOMC) meeting approaches, noted Fed observer Jim Grant anticipates long-term high rates, casting […]
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In the dynamic world of cryptocurrency, Bitcoin (BTC) is experiencing subtle yet noticeable fluctuations, trading at $41,457 with over 0.50% rise as of Tuesday. Market sentiments are heavily influenced by key economic events and policy changes. As the Federal Open Market Committee (FOMC) meeting approaches, noted Fed observer Jim Grant anticipates long-term high rates, casting a significant impact on Bitcoin’s valuation.
Meanwhile, the crypto community is closely watching the anticipated regulatory approval of El Salvador’s pioneering Volcano Bond, expected in the first quarter of this year.
Adding to the mix, Google’s recent revision of its advertising guidelines, which now accommodates coin trust advertisements for cryptocurrencies, especially spot Bitcoin Exchange-Traded Funds (ETFs), marks a pivotal moment for the digital currency’s mainstream acceptance and visibility.
These developments collectively shape the current and future landscape of Bitcoin’s market trajectory.
Jim Grant’s Prediction: Anticipating High Rates Ahead of FOMC Meeting
Market players—traders and investors alike—are keeping a close eye on the Federal Open Market Committee (FOMC) meeting scheduled for December 13, 2023. Speculation is rife regarding whether Fed Chair Jerome Powell will maintain the benchmark interest rate at its current high level. Remarkably, financial guru Jim Grant, well-known for his four decades of work with Grant’s Interest Rate Observer, forecasts a prolonged period of high interest rates following the FOMC meeting.
The federal funds rate, crucial for banking operations and central bank policy, is currently at its highest level in 22 years, ranging from 5.25% to 5.50%. Although market expectations suggest no rate hike at this meeting—with CME’s Fedwatch Tool indicating only a 2.9% chance—some anticipate a future shift toward lower rates.
BTCTN: #Economic Expert Jim Grant Anticipates Persistent High Interest Rates Post-FOMC https://t.co/foAdCg1IyG
— Hudson Estell
(@HudsonEstell1) December 12, 2023
As investors seek clarity amid economic forecasts and policy developments, this divergence in opinions on interest rates creates uncertainty in financial markets, potentially impacting various assets, including Bitcoin.
El Salvador’s Volcano Bond: Awaiting Q1 Regulatory Approval
On December 11, El Salvador’s highly anticipated “Volcano Bonds,” backed by Bitcoin, received regulatory approval from the Digital Assets Commission, setting the stage for a launch in Q1 2024. This development was confirmed by El Salvador’s National Bitcoin Office (ONBTC), and President Nayib Bukele alluded to the approval in a social media post.
The bond, designed to alleviate government debt and fund the construction of the proposed “Bitcoin City,” is set to be made available for purchase on the Bitfinex Securities Platform. This platform operates as an authorized trading venue in El Salvador for bonds and stocks built on blockchain technology.
El Salvador’s Bitcoin bonds, also known as “Volcano Bonds” have received regulatory approval, with a launch expected in the first quarter of 2024.https://t.co/S4AaNC2q6k
— Cointelegraph (@Cointelegraph) December 12, 2023
The announcement is a follow-up to El Salvador’s previous legislation, which laid the legal groundwork for the Bitcoin-backed bond. As it positively impacts Bitcoin’s price, market observers are closely monitoring the unfolding events.
Google’s Policy Update: Greenlighting Crypto and Bitcoin ETF Advertisements
Effective January 29, 2024, Google has revised its advertising guidelines to permit advertisements for digital coin trusts, including spot Bitcoin ETFs. This strategic move aligns with the Securities and Exchange Commission’s (SEC) anticipated approval of spot Bitcoin ETFs on January 10, 2024, marking a significant milestone in the cryptocurrency industry. Firms such as BlackRock, ARK Invest, and Grayscale are now able to promote their spot BTC ETFs under the updated guidelines, enhancing visibility and awareness.
The positive outcome of the Grayscale lawsuit sets a precedent that suggests the SEC is likely to grant approval, potentially leading to heightened institutional involvement and possibly triggering a sustained Bitcoin bull run. As the market looks forward to increased interest and adoption following the launch of spot Bitcoin ETFs, this development is poised to positively impact BTC prices.
Bitcoin Price Prediction
In today’s technical analysis of Bitcoin, we observe the currency navigating a delicate position on December 12. The 4-hour chart timeframe highlights pivotal price levels with immediate resistance at $41,665. If this threshold is breached, the next resistance levels lie at $42,349 and $42,929.
On the downside, immediate support is found at $40,780, with further safety nets at $39,827 and $38,364. The technical indicators reveal a nuanced story. The Relative Strength Index (RSI) sits at 37.99, pointing to bearish sentiment as it remains below the 50 threshold.
The 50-Day Exponential Moving Average (EMA) is at $42,345, with Bitcoin’s price currently below this mark, underscoring the short-term bearish trend. The observed chart pattern shows a downward channel, particularly as the price struggles below the $42,345 support zone. Closing below this level might reinforce a bearish trend.
Considering the technical indicators and chart patterns, the overall trend leans towards bearish. However, the short-term forecast remains cautious; if Bitcoin surpasses the immediate resistance levels, especially the 50 EMA, we could see a shift towards a bullish sentiment. For now, market participants should brace for the asset to potentially retest the support at $40,780 in the coming sessions.
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