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This is one of the most important weeks for Bitcoin (BTC). On Wednesday, the Federal Reserve (Fed) will decide on interest rates. We will also learn important data about the American labor market. And the next season of financial results will also begin.
Despite massive increases in US Treasury yields and geopolitical uncertainty putting pressure on stock markets, Bitcoin performed remarkably well.
October Was Positive for Bitcoin Price
The Bitcoin (BTC) price reached a close of $34,525 last week, its highest weekly close in 550 days. With the approval of a Bitcoin Exchange-Traded Fund (ETF) seeming increasingly likely, its impact on the future price cannot be overstated.
The same can’t be said for the S&P 500, which fell 3.5 percent in October. Compared to the peak in 2023 achieved in July, the decline is as much as 10%.
The answer to the question whether Bitcoin can continue this growth also depends to some extent on the yield of US treasury bonds.
The yield on 10-year US treasury bonds rose above 5% last week for the first time in 17 years. Strong data from the US labor market on Friday may result in further increases.
Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know
Will Markets See Another Increase in Interest Rates?
On Wednesday, after the meeting of the Federal Open Market Committee (FOMC), the US central bank will present their decision on interest rates, and the market estimates a virtually 100% chance that we will not receive another increase.
Last week, it was revealed that the US economy grew 4.9% in the third quarter of 2023. This is a sign that the US labor market is still strong and that we may have to deal with higher interest rates for a long time.
This isn’t necessarily good for Bitcoin, but it might get offset by approval of BlackRock’s spot Bitcoin ETF.
So, this week, the focus should be on Wednesday. If the Fed makes a different decision than expected on Wednesday, the price of Bitcoin could become highly volatile. Additionally, it is worth paying attention to Friday’s employment report.
Read more: 9 Best Bitcoin Exchanges and Platforms in 2023