Bitcoin slipped below the $17,000 level on Monday and is down nearly 2% in the day’s trade. BTC could face a test in the indices in December due to two global events that could sway its price downward. The Hong Kong stock market ‘Hang Seng’ is down 437 points, while Singapore’s SGX is also slipping toward the red. India’s Sensex remains on the back foot and Dow Jones is expected to bleed when the markets open on Monday.
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2 Events That Could Dictate Bitcoin’s Price in December 2022
Both the stock and crypto market investors are bracing for two big economic news this week. On Tuesday, the Labor Department will release its November CPI inflation report which could disrupt the market’s normal performance. The same day, the Feds scheduled a two-day meeting (Tuesday and Wednesday) to control rising inflation.
On Wednesday, the Federal Reserve is expected to raise interest rates yet again to tame inflation. The Fed Chief, Jerome Powell has been sending signals about tightening interest rates in interviews for early 2023.
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According to CME FedWatch Tool, the Feds might increase interest rates on Wednesday by 0.50 or 0.75 percentage points. Another interest rate hike could keep the markets under pressure as institutional investors could indulge in sell-offs. The markets are most likely to see a dip this week due to economic developments.
Therefore, Bitcoin sits at the crossroads of a price drop as the markets react strongly if the CPI data isn’t positive. It is advised to stay away from Bitcoin in December as the markets remain volatile and could slip further.
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At press time, Bitcoin was trading at $16,966 and is down 1.2% in the 24 hours day trade. It is also down 75.4% from its all-time high of $69,044, which it reached in November last year.