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According to market experts, the possibility of a change in the Federal Reserve's policies, lower inflation and the poteial approval of a spot bitcoin exchange-traded fund (ETF) in the United States are three factors that could fuel bitcoin's rise before the end of 2023.
Is Bitcoin Preparing for a Powerful Rally?
It is safe to say that Bitcoin has been very successful since the beginning of 2023 and has registered a significa growth of more than 130%. However, the question now is whether Bitcoin can coinue its upward trend in December.
Several upcoming eves may affect Bitcoin's price performance, three of which are particularly importa.
The first factor is the next meeting of the Federal Open Market Committee (FOMC), scheduled for December 13, during which the US ceral bank will review its ai-inflationary policy. Most experts expect the Federal Reserve to keep ierest rates unchanged. However, there is also a possibility that a decision will be made to reduce its perceage.
It should be remembered that the previous announcemes of the Federal Reserve in this matter have affected the price of Bitcoin. For example, this summer, when ierest rates increased by 25 basis pois, the price of Bitcoin fell below $30,000.
On the other hand, low ierest rates can encourage people to borrow and invest, and may once again turn people's atteion to more volatile and risky assets, including Bitcoin.
What about inflation?
The Federal Reserve's decision on ierest rates is mostly based on the rate of inflation in the United States. Although the coury's inflation has slowed down in the past few mohs, it is importa to keep an eye on it.
The US Bureau of Labor Statistics is scheduled to report on December 12th how the inflation rate changed last moh.
Bitcoin spot ETF, a big catalyst!
Finally, we should meion the efforts of financial gias such as BlackRock, Fidelity and Inosco, which have all registered to launch a Bitcoin spot ETF in the United States.
Market experts and even language models based on artificial ielligence believe that the approval of these requests by the US securities regulator could cause a significa increase in the price of Bitcoin.
The price of Bitcoin is on the verge of 40 thousand dollars!
As reported in the previous news of Cryptocurrency News, following the rece statemes of Jerome Powell, the chairman of the Federal Reserve, that the ierest rate will not increase before the end of this year, the price of Bitcoin has reached above 39 thousand dollars for the first time since May 2022.
Reports indicate that more than $100 million of trading positions, mainly short positions, were liquidated in the market following this price growth. The largest liquidated order was worth 2 million dollars and was on the OKX exchange.
