On December 9, 2022, crypto analyst Nicholas Merten posted a video about bitcoin (BTC) on his YouTube channel. He explained to his more than 510,000 followers what could happen in the flagship crypto market. According to him, two upcoming macroeconomic events could have a major impact on bitcoin prices.
The reason investors stopped buying bitcoin (BTC)
Crypto analyst Nicholas Merten talked about the upcoming pullback in bitcoin (BTC) in his December 9 video. For him, the short-term fate of the crypto flagship will fundamentally depend on two macroeconomic events. it’s about the consumer price index report released (CPI) as well as the the last annual meeting of the Fed. You should know that these two major events will happen this week.
Nicholas Merten said:Why don’t people buy the bunch? The reason, in my opinion, is what will happen here next week, and that has to do with the inflation numbers coming from the CPI report as well as the Fed’s meeting at the Federal Open Market Committee (FOMC , Editor’s note)“.
Merten had indicated that the CPI report would undoubtedly show higher than expected inflation data. The crypto analyst added that more than 80% of the market expects a 50 basis point interest rate hike from the Future.
Markets may continue to be under pressure
Nicholas Merten expects markets to remain under pressure despite a smaller increase in interest rates by the Fed. He said : “Does that mean that the deal is just saved immediately? Does this mean we are starting the next bull cycle? It’s not“.
“In fact, if we look at past bear markets, even when the Fed starts pivoting and cuts the fed funds rate at several points, you’ll see that stocks still go down. “, he emphasized the analyst.
Publication of the CPI report was intended for December 12. The current CPI appears to be 7.1%, up from 7.7% previously. Regarding the meeting of the Federal Open Market Committee (FOMC)she is scheduled for December 14.
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Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and share my pen knowledge related to this ecosystem.