Bitcoin: 3 Things That May Affect Price in the Next 10 Days
Bitcoin could experience volatility in November 2022, as three developments might dictate its price movements this month. Historically, economic developments and government decisions have affected Bitcoin and the crypto markets, and this time is no different. The U.S is poised for three major headways this month that could sway Bitcoin’s price and kick in volatility. It’s time to remain cautious for the next 10 days, as BTC could either crash or move north with the upcoming developments.
1. FOMC Meeting
The Feds are expected to raise interest rates again by 75 basis points on Wednesday, according to reports. The interest rate could eventually reach about 5%, according to Goldman Sachs. This is the fourth time that the Feds raised interest rates in 2022 to combat rising inflation. The interest hikes pose a challenge to Bitcoin, as the king of crypto has previously reacted strongly to the news.
The hike in interest rates is showing signs of the economy slowing down. The housing market is slumping as mortgage rates have almost doubled this year, making it impossible to afford a home. The fixed 30-year mortgage has reached 7.08% today, up from 3.85% in March 2022.
2. Labor Statistics Report
The US Bureau of Labor Statistics will release the report on the new jobs created for October 2022 in all non-agricultural businesses on Friday. The report could make both the stock and crypto markets react, as the job index is considered an important economic indicator.
If the labor report is on the positive side, Bitcoin is expected to continue on a bullish rally. However, if the report shows job stagnation, the markets could head south as it indicates the economy is in crisis.
3. The U.S Mid-term Elections
The U.S. is heading towards the mid-term elections on November 8, which will decide who will control the Senate and House of Representatives. The Democrats are in charge now, and exit polls suggest that the Republicans could win the mid-term elections. New leaders would enter the Senate and the House of Representatives with their ideas for the economy that could affect the markets.
The Biden administration brought the crypto markets under its scope with a handful of executive orders. The Democrats also proposed to regulate cryptos and keep the markets under a purview. We’ll have to wait and watch to see which direction the election goes and how it could affect Bitcoin and the markets in general.