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Bitcoin Sizes Up $31K in 3-Month High, Gaze Turns to Upcoming Inflation Report

Bitcoin Sizes Up $31K in 3-Month High, Gaze Turns to Upcoming Inflation Report

Kickstart the week with FunderPro

Key Takeaways

  • Bitcoin’s historically profitable month breaks 3-month high
  • Upcoming PCE report serves as the Federal Reserve’s preferred gauge of inflation.

Bitcoin’s Boom

Bitcoin experienced a bullish upturn this Monday, briefly brushing $30,922, a level unseen since July, amid optimism surrounding ETF news. As the end of ‘Uptober’ nears, investors are finding fresh enthusiasm around the largest crypto in the market. 

The traditionally prosperous month opened with a climb to $28K, before cooling off to levels near $26K by the middle of the month. In view of this, the hot commodity has soared 12.4% in the last week alone, and 84.7% in the year to date. 

Last week, we reported that the coin had been boosted by fake spot Bitcoin ETF news. Digital news outlet Cointelegraph falsely posted on X (formerly Twitter) that the US Securities and Exchange Commission, or the SEC, had given the go-ahead for BlackRock’s spot Bitcoin ETF, before retracting their statement. 

That being said, there is hope. Crypto asset manager Grayscale recently won a court ruling against the SEC for its application to convert its Bitcoin trust into an ETF. Previously rejected by the SEC, the victory has sparked experts’ expectations of at least one spot Bitcoin ETF to hit the market by early 2024, in turn supporting Bitcoin’s upswing. 

The upward trend doesn’t seem to be slowing down, but investors are keeping a watchful eye on the coin to catch any signs of a potential reversal.

The Kick-Off

Launching into this week, market participants are bracing themselves for a hefty economic calendar, scattered with reports and quarterly earnings that could have a substantial impact on financial markets. 

To start, tech companies Microsoft and Google parent Alphabet, will release their third-quarter earnings after market close on Tuesday. 

The US Gross Domestic Product (GDP) report is set for release on Thursday. This report will offer insight into the broader conditions of the US economy, representing the total value of goods and services generated within the quarter. 

Additionally, Personal Consumption Expenditures (PCE) and Core PCE (excluding food and energy) results will be announced on Friday. This report is The Federal Reserve’s favorite gauge of inflation and will provide data for September. Analysts are forecasting a 0.2% drop in Core PCE, down to 3.7% from 3.9% in August.

On that note, the stock market has suffered a significant decline, with the S&P 500 closing 1.3% lower at Friday’s bell, nearing its lowest close since July. The Nasdaq followed suit, slumping 1.5%. The Dow Jones Industrial Average lost 0.9%, marking a 3-day losing streak. 

In short, traders have an eventful week ahead. They should keep a sharp eye on Bitcoin’s price – any news, particularly connected to ETFs – will drive the crypto’s next move. Inflation data could affect markets, as a swing in any direction will influence policymakers’ interest rate decisions. 

Risk management, strategy, and emotional control will benefit traders in the upcoming week.