The price of Bitcoin during yesterday’s trading tested the level of $43,497, but then the Bitcoin rate corrected to its minimum for the day at $41,810.
On the morning of Wednesday, December 20, the rate of the first cryptocurrency is $42,730 and minus 0.75% of the cost per day.
There are no fundamental factors yet that would allow us to overcome the $43,500 mark, although local bullish momentum is still possible in the market. Traders and investors remain cautiously optimistic that the SEC will soon approve applications for spot Bitcoin ETFs.
The general situation on world markets and its impact on the Bitcoin forecast and the price of the cryptocurrency
In the US, Dow Jones futures, S&P 500 futures and Nasdaq 100 futures rose about 0.1%. The 10-year US Treasury yield rose to 3.95%. Meanwhile, oil prices extended their recent recovery as intermediate futures settled at $73 a barrel.
Eurozone inflation data was published on an annualized basis for November, amounting to 2.4%. That was in line with analysts’ expectations and was a significant move below October’s 2.9%, and was also the lowest in 16 months.
This was mainly due to falling energy prices, which fell 11.5% from 11.2% in October.. Prices for alcohol, food and tobacco rose 6.9% in November, up from 7.4% last month. Prices for services also grew more slowly, by 4%, compared with 4.6% in the previous month.. Non-primary industrial goods also rose in price by 2.9% from 3.5% in October.
The final annualized estimate of core inflation, which excludes food, energy, tobacco and alcohol prices, was 3.6%. This was the lowest figure since April 2022.
Belgium had the lowest annual inflation rate at -0.8%, followed by Denmark at 0.3% and Italy at 0.6%.. The Czech Republic, on the other hand, had the highest inflation rate at 8%, followed by Hungary at 7.7%, and Romania and Slovakia at 6.9%.. On an annual basis, inflation fell in 21 EU member states, increased in three and remained the same in three more.
However, ECB President Christine Lagarde cautioned investors against getting too excited too soon, warning that inflation could well rise again in December.. This may likely be due to the onset of cold weather and, as a consequence, an increase in energy demand and prices.
This could mean inflation will fall less than expected next year if energy prices continue to rise again. As a result, the interest rate cuts that investors are eagerly awaiting may have to be delayed a little longer.
Some of the European Central Bank’s energy price cap measures will also be lifted in 2024, pushing prices further upward.
At its last monetary policy meeting for 2023 on December 14, the ECB decided to keep interest rates stable at 4.5%, as expected. . However, most central bankers stressed that further rate hikes do not appear to be needed to bring inflation under control.
However, falling productivity, persistent wage growth, weather events and escalating geopolitical tensions in the Middle East are likely to weigh on inflation, at least in the short term.
Therefore, Lagarde’s previous warning of a sharp rise in inflation in December 2023 and early 2024 cannot be completely ignored.
What will the price of Bitcoin be in the near future?