Bitcoin (BTC) at $5,000 in 2023?

On December 9, 2022, crypto analyst, Nicholas Merten, posted a video about bitcoin (BTC), on his YouTube channel. He explained to his more than 510,000 followers what could happen in the flagship crypto market. According to him, two upcoming macroeconomic events could have a big impact on bitcoin prices.

The reason investors stopped buying bitcoin (BTC)

Crypto analyst Nicholas Merten talked of the upcoming bitcoin (BTC) pullback in his December 9 video. For him, the short-term fate of the flagship crypto will essentially depend on two macroeconomic events. it’s about the consumer price index report released (CPI) as well as the last annual meeting of the Fed. You should know that these two major events will happen this week.

Nicholas Merten said:Why don’t people buy the drop? The reason, in my opinion, is what’s going to happen here next week, and that has to do with the upcoming inflation numbers from the CPI report as well as the Fed’s meeting at the Federal Open Market Committee (FOMC, Editor’s note)“.

The full text of the analyst

Merten had indicated that the CPI report would undoubtedly show higher inflation data than expected. The crypto analyst added that more than 80% of the market expects a 50 basis point interest rate hike from the Fed.

Markets could continue to be under pressure

Nicholas Merten expects markets to remain under pressure despite a smaller interest rate hike by the Fed. He stated : “Does that mean the market is just immediately saved? Does this mean we are kicking off the next bull cycle? Nope“.

In fact, if we look at previous bear markets, even when the Fed starts to pivot and cut the fed funds rate by several points, you’ll see that stocks still went down.“, underlined the analyst.

The publication of the CPI report was planned for December 12. It appears that the current CPI is 7.1%, whereas it was previously 7.7%. As for the meeting of the Federal Open Market Committee (FOMC)she is scheduled for December 14.

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