Bitcoin Hits $45,500 — Will This Week’s Fed Meeting Minutes Send it Higher?

10 months ago 8

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Following Monday’s New Year’s Day holiday, the wheels of finance and economy start spinning again in the United States. A short week on the economic calendar will see the minutes of the Federal Reserve’s December meeting published, which could impact Bitcoin’s price.

Macroeconomics outlet The Kobeissi Letter listed the key economic events for the United States for the week beginning January 2 following the New Year’s Day holiday.

This Week’s Economic Calendar

This week, investors’ attention will be split between the release of reports reflecting US labor market trends and the Fed’s last policy meeting minutes.

Wednesday will see the release of December’s ISM Manufacturing PMI report. This is released by the Institute for Supply Management to show business conditions in the US manufacturing sector and is a significant indicator of the overall economic conditions.

The minutes of the Federal Open Market Committee (FOMC) meeting in December will be released on January 3. These are often market-moving events as insight into Fed decision-making and future policy can be made.

This week, investors will be seeking confirmation of the central bank’s pivot to easing monetary policy. They will also be looking out for hints regarding the timetable of expected interest-rate cuts.

January 5 will see the release of December’s ISM Services PMI report. This shows business conditions in the US services sector, which contributes almost 80% of its GDP. The figures are forward-looking indicators that provide insight into the factors that influence GDP growth and inflation.

The US Bureau of Labor Statistics will also release payrolls and unemployment reports on Friday.

These detail the number of new jobs created during the previous month and the percentage of people who were actively seeking employment during the previous month.

They are also key economic indicators and sentiment on the overall health of the US economy, which is in recovery.

BTC Market Outlook

Crypto markets still have Bitcoin ETF fever. As a result, total market capitalization reached its highest level for 20 months on Tuesday morning in Asia at $1.82 trillion.

Bitcoin is leading those gains with a 7.5% price surge on the day to reach an intraday high of $45,500. It is the highest the asset has traded for since March 2022, two months before the Terra/Luna collapse.

Ethereum is also moving with a 5% gain to reach $2,389 at the time of writing, and many altcoins are getting even bigger lifts.

Top performing altcoins this Tuesday morning include Solana (SOL), Cardano (ADA), Avalanche (AVAX), and Polkadot (DOT), all adding more than 6% on the day.