Connect with us

Bitcoin

US Economic Events Impacting Bitcoin and Crypto Sentiment

Published

on



This week, three US economic events will be on crypto traders’ and investors’ watchlists. The interest comes amid the continued influence of US macroeconomic data on Bitcoin (BTC) and crypto prices in 2024, after drying up last year.

Meanwhile, Bitcoin remains just shy of the $100,000 psychological level, hovering above $98,000 after retracting to the $95,000 range over the weekend.

Minutes of Fed’s November FOMC Meeting

All eyes will be on the Federal Reserve (Fed) on Tuesday, November 26, for the minutes of the November 6 FOMC (Federal Open Market Committee) meeting. Traders and investors will be watching to see if the FOMC minutes shed some more light on how the policymakers assessed the economy leading up to the November meeting.

The minutes may also show at least some discussion about possible economic implications following the US election outcome. They will come after policymakers voted to cut interest rates by 25 basis points (bps), following an initial 50 bps reduction in September. Investors will be looking for any clues on whether the pace of rate cuts could drop from here.

Meanwhile, data continues to suggest the US economy is holding up well. Still, fears abound that President-elect Donald Trump’s proposed policies may be inflationary, potentially reducing the need for lower rates.

“Experts say Donald Trump’s election victory could shift interest rate policy in the US as his promised policies risk higher inflation…Tradition tells us that that increase in tariffs will increase inflation in the US,” The Canadian Press reported, citing Sheila Block, an economist with the Canadian Centre for Policy Alternatives.

One way the FOMC minutes could affect Bitcoin and crypto is through their impact on the overall market sentiment. Any dovish or hawkish tones in the minutes can influence market expectations and lead to changes in investor behavior.

Initial Jobless Claims

Another key US economic event this week is the release of initial jobless claims on Wednesday, November 27. Labor market weakness was a concern through the summer and fall, with rising jobless claims, an increased unemployment rate, and slower monthly job gains. This data influenced the Federal Reserve’s decision to cut interest rates by half a percentage point in September.

However, since then, labor market data has come in better than expected, with the unemployment rate falling from a peak of 4.3% to 4.1%. The previous initial jobless claims data came in at 213,000 for the week ending November 16, below the estimate of 220,000, which was a good sign.

“US initial jobless claims fell by 6,000 to 213,000 last week, the lowest since April. The labor market is strong,” the publisher of the Lead-Lag Report noted.

Weekly unemployment claims have been steadily decreasing after reaching a peak in over a year this past October. While initial jobless claims are falling, the rise in continuing claims indicates that employers are striving to retain workers. However, those who lose their jobs are facing challenges in securing new employment.

“Initial jobless claims remain very slow but continuing claims hit a three-year high. This reinforces that employers aren’t actively laying workers off, but they aren’t hiring, either,” Sevens Report commented.

For now, things appear to be okay on the labor side of the Federal Reserve’s dual mandate. If the trend continues, it would suggest that economic hardship is reversing and that the labor market is gaining strength. This could lead to increased consumer spending and investment in traditional assets like Bitcoin and crypto.

US PCE Inflation

Crypto market participants will also watch Wednesday’s October US PCE (Personal Consumption Expenditures) inflation data, as this is the Fed’s preferred gauge. The November PCE index on Wednesday is also a good watch. The data will show whether inflation continued to slow in November. 

“Expectations: Monthly PCE expected to rise by 0.2% Annual PCE expected at 2.3% Core PCE monthly increase at 0.3% Core PCE annual increase at 2.8%,” data on MarketWatch shows.

Rising PCE figures often raise concerns about higher inflation levels in the economy. If PCE inflation exceeds expectations, it could weaken the US dollar as investors anticipate potential monetary policy actions, such as interest rate hikes. A weaker dollar tends to benefit Bitcoin and other cryptocurrencies, which often show an inverse correlation with the USD.

In such scenarios, investors may turn to alternative assets like Bitcoin as a hedge against inflation. Cryptocurrencies are frequently seen as a store of value, similar to gold, during periods of inflationary pressure.

Currently, the Federal Reserve remains optimistic that inflation is nearing its 2% target. Policymakers have maintained interest rates at historically high levels to combat the inflation surges of the past two years. In this context, traders and investors are closely monitoring price data for positive signs that could prompt the Fed to begin easing interest rates.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Bitcoin

$500 Trillion Bitcoin? Saylor’s Bold Prediction Shakes the Market!

Published

on


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Michael Saylor, one of the most outspoken supporters of Bitcoin, is back and bolder than ever. In a recent statement, the former MicroStrategy CEO predicted that the alpha coin will potentially hit a $500 trillion market cap. Saylor’s bold prediction for the world’s top digital asset comes during the intensified push for a Strategic Bitcoin Reserve (SBR). 

In his latest pro-crypto statement, Saylor argued that the digital asset will “demonetize gold”, then it will demonetize real estate, which he calculated as 10x more than gold. To summarize his argument, Saylor further states that Bitcoin will demonetize “all long-term store of value”.

Push For SBR Gains Ground

Saylor’s latest statement comes as Congress intensifies its efforts to build the country’s BTC holdings. United States President Donald Trump formalized the plans to build crypto holdings through an executive order to establish a strategic crypto reserve that will initially include $17 billion worth of BTC that the country currently controls.

According to the president, additional acquisitions of cryptocurrency are allowed, provided these are done through “budget-neutral” approaches. Senator Cynthia Lummis initially proposed in the Senate, through the Bitcoin Act, the plan to create a Bitcoin reserve. Under the proposal, the administration can purchase 1 million Bitcoin to complement the reserve.

Saylor Explains Crypto’s Role During Blockchain Summit

Saylor’s latest prediction on Bitcoin was made during his appearance at the DC Blockchain Summit. He was joined on stage by Jason Les, the CEO of Rito Platforms, and Lummis, the principal author of the Bitcoin Act.

BTC is now trading at $83,238. Chart: TradingView

During the program, Saylor was asked about America’s need for Bitcoin. Saylor answered with conviction, saying the rising importance of BTC is inevitable and will happen with the US’ participation. During his talk, he shared that Bitcoin, created by the enigmatic Satoshi Nakamoto, is unstoppable. 

Image: Gemini Imagen

Saylor added that the premier digital asset is the next stage in money’s evolution, and it’s currently absorbing value from traditional assets like currency reserves and real estate.

Saylor Predicts Top Coin Will Reach $500 Trillion In Market Cap

During his talk, Saylor predicted that BTC will eventually grow from $2 billion to $20 billion, which can hit $200 billion and beyond. Finally, he thinks the asset can achieve a $500 trillion market capitalization, reflecting more than 29,000% increase from its current market capitalization of $1.67 trillion.

Saylor’s recent bold prediction aligns with his firm conviction and support for the asset. He argues that Bitcoin’s unique features, its decentralized nature and fixed supply, make it a perfect hedge against economic uncertainties like inflation.

Featured image from Gemini Imagen, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.





Source link

Continue Reading

Bitcoin

Big Bitcoin Buy Coming? Saylor Drops a Hint as Strategy Shifts

Published

on


Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A top executive of Strategy, formerly MicroStrategy, posted a cryptic post on X, fueling speculation that the company might be positioning itself to make another Bitcoin acquisition soon.

Strategy Executive Chairman Michael Saylor suggested in an X post that the company would purchase additional Bitcoins to boost its current BTC holding of $42 billion.

Saylor To Buy More Bitcoin 

In a typical Saylor fashion, the Strategy top honcho disclosed the company’s BTC investment portfolio tracker, an indicator that the company is planning an upcoming Bitcoin acquisition.

“Needs even more Orange,” Saylor said in the post, referring to the orange circles in the graph (below), which represents the company’s Bitcoin purchases since September 2020.

Once again, Saylor’s post intrigued the crypto community because many believe the graph conveys a message that Strategy will buy more BTC soon.

Strategy Stockpile: Over $40B BTC

According to Saylor, Strategy’s Bitcoin holding now stands at more than $42 billion. Despite the company’s already huge investment in BTC, it seems the company will continue to increase its holdings, believing in the value of crypto.

Strategy has made great strides in building its BTC reserve from its initial Bitcoin purchase of 21,454 coins worth $250 million in August 2020.

On March 17, the company announced its latest acquisition of 130 Bitcoins for about $10.7 million in cash, with an average price of around $82,981 per coin.

BTC is now trading at $84,287. Chart: TradingView

Meanwhile, Onchain Lens reported on Sunday that Strategy moved a considerable number of its coins to new addresses.

“Strategy (formerly MicroStrategy) transferred 7,383.25 $BTC worth $612.92M to three new addresses on March 30,” Onchain Lens said in a post.

Analysts believe the company is influencing the crypto market to strengthen its position, as its chairman has consistently urged others never to sell their Bitcoin.

Fueling BTC Adoption

Many market observers argued that Saylor’s BTC investment strategy might have driven crypto adoption. Ironically, Saylor was pessimistic about Bitcoin’s future in 2013, predicting that the flagship crypto would fail.

However, in 2020, Saylor became one of Bitcoin’s staunch advocates and has now been preaching the merits of the firstborn crypto, urging companies to acquire Bitcoin.

For example, Visa planned to let its customers spend digital assets directly at 70 million merchants. At the same time, financial institutions such as JPMorgan and Morgan Stanley have begun offering crypto investments to wealthy clients and institutional investors.

Featured image from Times Now, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.





Source link

Continue Reading

Bitcoin

Strategy Adds 22,048 BTC for Nearly $2 Billion

Published

on


Michael Saylor announced that Strategy purchased nearly $2 billion worth of Bitcoin. This is a massive leap over last week’s purchase, which was already quite substantial.

Nonetheless, the firm was only able to make this acquisition thanks to major stock offerings. Bitcoin’s price has been sinking over the last few weeks, and this could mature into a potential liquidation crisis.

Strategy Maintains Bitcoin Purchases

Since Strategy (formerly MicroStrategy) began acquiring Bitcoin, it’s become one of the world’s largest BTC holders. This plan has totally reoriented the company around its massive acquisitions, inspiring other firms to take up the same plan.

Today, the firm’s Chair, Michael Saylor, announced another purchase, much larger than the last few.

“Strategy has acquired 22,048 BTC for ~$1.92 billion at ~$86,969 per bitcoin and has achieved BTC Yield of 11.0% YTD 2025. As of 3/30/2025, Strategy holds 528,185 BTC acquired for ~$35.63 billion at ~$67,458 per bitcoin,” Saylor claimed via social media.

Strategy’s latest Bitcoin acquisition, worth just shy of $2 billion, is a major commitment. In February, the firm made a similar $2 billion purchase, and it was followed by a tiny $10 million buy and a $500 million one. The $500 million purchase, which took place on March 24, only happened thanks to a huge new stock offering. This move further cements Strategy’s faith in BTC.

By making these billion-dollar buys, Strategy is able to buttress the entire market’s confidence in Bitcoin. However, investors should be aware of a few potential cracks.

First of all, Bitcoin’s performance is a little subpar at the moment. Despite hitting an all-time high recently, Bitcoin is having its worst quarter since 2019, and there is not much forward momentum.

Bitcoin (BTC) Price Performance
Bitcoin (BTC) Price Performance. Source: BeInCrypto

This could cause a unique problem for the company. Since Strategy is a cornerstone of market confidence, it is unable to offload its assets without jeopardizing Bitcoin’s price.

The firm’s debts are growing at a fast rate, and this could have dangerous implications if Bitcoin keeps falling. Strategy could be forced to liquidate, even if that seems unlikely now.

Still, it’s important to remember that these are only possible scenarios. Strategy has maintained its consistent Bitcoin investments for nearly five years, and it’s paid off tremendously well. However, if it keeps taking on billions in fresh debt obligations, this faith will turn into a gamble with very high stakes.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io