Bitcoin Soars: Eyes on Federal Reserve and Economic Indicators

Bitcoin price remains on the radar of investors as the wheels of the United States’ financial and economic machinery start turning again after the New Year’s Day holiday. In a concise week, market participants closely watch key economic events, particularly the release of the Federal Reserve’s December meeting minutes, which could influence the trajectory of Bitcoin’s value.

The Kobeissi Letter, a macroeconomics outlet, outlined the significant events for the week starting Jan 2. Reports on US labor market trends and insights from the Fed’s latest policy meeting are dividing investor attention.

Key Events This Week:

1. Markets Closed, Happy New Year! – Monday

2. ISM Manufacturing data – Wednesday

3. JOLTs Jobs data – Wednesday

4. Fed Meeting Minutes – Wednesday

5. ISM Non-Manufacturing data – Friday

6. December Jobs Report – Friday

Short but busy week to kick off…

— The Kobeissi Letter (@KobeissiLetter) December 31, 2023

On Wednesday, the Institute for Supply Management will unveil the Dec ISM Manufacturing PMI report. This report is crucial, reflecting business conditions in the US manufacturing sector and serving as a vital indicator of overall economic conditions.  On Jan 3, the release of December’s FOMC meeting minutes is expected to impact the market. Investors are keen to gain insights into the Fed’s decision-making and future policy directions.

Eager anticipation surrounds confirming the central bank’s shift towards easing monetary policy. Many are also keenly awaiting hints about the potential timing of interest-rate cuts. The economic landscape is evolving, and investors seek clues to navigate these changes.

Moreover, Jan 5 will release the ISM Services PMI report for Dec, shedding light on business conditions in the US services sector, contributes nearly 80% to the GDP. These forward-looking indicators provide insights into factors influencing GDP growth and inflation.

Economic Indicators and Bitcoin Hits $45.5K

On Friday, the US Bureau of Labor Statistics will share information about jobs and unemployment for the past week. The reports tell us how many new jobs have been made and what percentage of people are looking for work. These are important signs of how the US economy, which is getting better now, is doing overall.

Moreover, people really want Bitcoin ETFs in the world of crypto. The total value of all the stocks increased to its most in 20 months, hitting $1.82 trillion early morning in Asia on a Tuesday. Bitcoin started this rise, boosting its price by 7.5% to a top point of $45,500 in one day. This is the highest it’s been since March last year.

Ethereum also made money. It went up 5% and its value reached $2,389. Other cryptocurrencies like Solana, Cardano Avalanche, and Polkadot saw even bigger increases of more than 6%. The crypto market seems to start the year strong, with Bitcoin leading upwards.

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