Bitcoin (BTC) prices went up on Friday after a report from the United States government indicated that the Federal Reserve’s preferred inflation indicator climbed at a slower rate than anticipated in the previous month.
This is significant because it indicates that the Federal Reserve is making progress in its effort to slow the rate at which prices are rising. This, in turn, signals that the Fed may be able to ease up on its efforts to tighten monetary policy sooner rather than later. It is detrimental to the prices of risky assets such as stocks and Bitcoin.
The market sentiment has become more positive due to the oldest cryptocurrency’s recent climb beyond $20,000. The 5.6% increase in value that Bitcoin has seen since Sunday is the highest weekly gain it has had in the past three months.
#Bitcoin is trading above $20k for already 3 days in a row! 🚀
— Crypto Rover (@rovercrc) October 29, 2022
However, the most crucial test will take place the following week when the Federal Open Market Committee of the Federal Reserve meets. Most market participants anticipate that the Federal Reserve will increase the key interest rate by 75 basis points, equal to 0.75 percentage points.
However, the event that is most likely to generate excitement is going to be Federal Reserve Chair Jerome Powell’s signal regarding the committee’s agenda for its meeting in December.
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