- Bitcoin has surged above $63,000 as the new week unfolds several stories that could impact prices.
- The Federal Reserve’s minutes, CPI data and third-quarter earnings figures could fuel further price gains.
Bitcoin [BTC] has traded between $60,000 and $64,500 over the past seven days. The choppy price movements without a clear trend indicate a state of market uncertainty.
However, BTC could be in for a volatile week as trading volumes were up 55% at the time of writing. CoinMarketCap. Bitcoin is also up 2.5% in 24 hours and is trading at $63,435.
The rising volumes and price gains suggest traders may be betting on several stories that could push prices higher this week.
Federal Reserve Minutes
The US Federal Reserve is expected to release the minutes of its September monetary policy meeting on October 9.
Last month, the Federal Reserve cut interest rates for the first time since 2020. The September minutes could shed light on possible rate cuts at the November and December meetings.
The 50 basis point cut in September played a role in pushing up BTC prices last month. Data from the CME FedWatch tool shows that 97% of investors expect the Fed to cut rates by 25 basis points in November.
Source: CME FedWatch Tool
A further reduction in interest rates will fuel interest in risky assets like Bitcoin. If the Fed minutes take a more dovish stance, it could boost BTC’s gains.
CPI and PPI data
US inflation data for September is expected to be released on October 10. Markets expect annual inflation to reach 2.3%, down from 2.5% reported in August.
Moreover, core inflation is the same year-on-year expect it to cool down to 3.1%, down from the 3.2% reported in August.
The Producer Price Index (PPI), which is also used to predict inflation, will be published on October 11. Economists prediction that the PPI data will decrease from 1.7% to 1.3% on an annual basis.
If inflation data comes in as expected or falls below expectations, it could yield gains for Bitcoin. On the other hand, if this data comes in hotter than expected, it could lead to Bitcoin’s volatility and cause a price drop.
BlackRock’s third-quarter earnings
$10 trillion asset manager BlackRock, one of the issuers of spot Bitcoin and Ethereum exchange-traded funds (ETFs), will report its quarterly results this week.
iShares Bitcoin Trust (IBIT) from BlackRock holds 367,000 BTC valued at $22 billion. Therefore, the strength of third-quarter earnings could impact prices.
JPMorgan will also report its Q3 results later this week, after which it will file 13-F filings with the U.S. Securities and Exchange Commission (SEC) disclosing its exposure to Bitcoin ETFs.
In the second quarter, JPMorgan’s 13-F filing revealed it owned $760,000 worth of Bitcoin ETF shares. Since it is the largest US bank, a change in Bitcoin ETF holdings could increase volatility.
Read Bitcoin’s [BTC] Price forecast 2024–2025
These three stories are already driving activity in the Bitcoin futures market. BTC open interest rose to the second highest level this month, reaching $34 million at the time of writing, per Coinglass.
This increase shows that there are more traders opening positions and participating in the market.
Source: Coinglass