Various events are expected this week that could contribute to the rise of bitcoin (BTC) or hinder it, depending on its development.
Every day of the week, except Wednesdaythere will be speeches from different Federal Reserve officials (Fed), Central Bank of the United States. Although Jerome Powell, the president of the organization, will not appear, any significant message from these leaders about the economy could impact financial markets.
On Tuesday, October 15, consumer inflation expectations in the United States will also be published. If it offers an annual result other than the expected 2.9%, it could shake up investors’ operations. And to this is added that the next day the import price index in the economic power will be released.
Additionally, Christine Lagarde, president of the European Central Bank (ECB), will give a speech on Wednesday, October 16. And the next day, said organization will announce if it cuts the interest rates as anticipated. Consequently, these aspects have a direct influence on the liquidity available in the economy for the markets.
According to the Investing explorer survey, expectations are that the ECB will establish a 0.25% cut in interest rates, which would leave them at 3.40%, as seen below.
On Thursday, October 17, unemployment claims will be reported in the United States, which could fuel concerns about a recession if it continues to grow. This day the September report on retail sales and industrial production in the country will also be published, which will give insight into economic health.
The economic calendar expected for this week closes on Friday, October 18 with data from the housing market in the economic powerhouse. “If it shows weakness, it could increase bitcoin’s appeal as an alternative investment during economic uncertainty,” holds about it the enthusiastic investor Mark Cullen.
Company profits can also influence bitcoin
Cullen It also recommends being attentive to the earnings reports that large companies will present this week.such as Goldman Sachs, Bank of America and Netflix. “Strong gains could push investment back into traditional stocks, which could impact the price of bitcoin if investors rebalance their portfolios away from cryptocurrencies,” he says.
While the main stocks listed in the United States marked new historical highs last week, bitcoin remains in a period of consolidation. For seven months, the digital currency has been trading in a range below its new all-time high, as reported by CriptoNoticias.
In any case, it should be noted that bitcoin is seen by several investors as a risk asset due to its high volatility. Therefore, in the event of an economic improvement, demand may increase as a result of portfolio diversification. Therefore, it is crucial to observe the movements of the markets in light of the development of the environment.
This week, the price of bitcoin began rising to $65,000 (USD), its highest level since last Monday. If it exceeds the USD 66,000 area, it would enshrine a trend of increasingly higher highs which would increase optimism.
