The bear market has been relentless. The little upward momentum gathered last week came to a halt. For the most part, the price action has been at the mercy of good and bad news. The whales are hibernating, and with little volatility, Bitcoin is far from directionless.
But experts are impatiently preparing for a move that will change the current market dynamics. And volatility may not be far off. This is actually what could put more pressure on the crypto market. At a precarious $17,000, Bitcoin risks losing more ground as the space continues to hover in the “fear” zone.
Despite the lack of momentum, there is hardly a dull side to crypto. But the upcoming volatility is to watch out for.
CPI and FOMC to end the year?
The US consumer price index (CPI) is another big event that market participants are preparing for. The report, which is scheduled to be released on December 13, has historically triggered large swings in the price of the world’s largest crypto asset. Therefore, Bitcoin may finally break out of its sideways price action despite trading rather quietly leading up to the fact.
In addition, the meeting of the Federal Open Market Committee (FOMC) will end the very next day. During the latter, the institution will discuss possible interest rate increases.
A higher-than-expected CPI print and a more hawkish Fed could haunt any forecast rally to the upside, as did reversals in April and August. On the contrary, another disinflationary pressure could see “many chasing a continuation of the rally towards the end of the year”.
With less than an hour and a half to go, #Bitcoin literally trades on the line that separates the weekly trade from red/green.#CPI Report Tuesday, #FED interest rate increases and #JPow speaking Wednesday. Watch for volatility. pic.twitter.com/5KzDYYvd1T
— Material Indicators (@MI_Algos) 11 December 2022
SBF Potential Hearing
The headache of the FTX drama is unlikely to end anytime soon. More scoops will be unraveled, and so will more companies. The disgraced head of the bankrupt crypto exchange – Sam Bankman-Fried, is expected to appear before a congressional committee tomorrow, December 13th.
It is important to note that, despite all the allegations of deliberate fraud and a growing chorus of people pushing for a more exhaustive investigation, Bankman-Fried has been “invited” and not subpoenaed. After initial reluctance, SBF has agreed to give an “explanation” of what went wrong.
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